NEW YORK (AP) – Atkins Nutritionals Inc., the company that popularized the low-carbohydrate diet, filed for bankruptcy Sunday, a company spokesman said.

A hearing was scheduled for Monday in Bankruptcy Court, said spokesman Richard Rothstein. The company said in a statement that it had reached an agreement with the majority of its lenders that would give them equity in exchange for a reduction in debt.

CEO Mark Rodriguez said the company has in the past year “adjusted our organization to accommodate a smaller business and have begun to position the Atkins brand more broadly for consumers who are concerned about heath and wellness.”

The company will focus on its nutrition bars and shakes, Rodriguez said in a statement.

Atkins has been hurt by waning popularity of its namesake diet, which focuses on eliminating carbohydrates like bread. The diet drawn criticism for its focus on high-fat foods and low fruit and vegetable consumption.

The company said its bankruptcy filing would not affect its day-to-day operations.