Popular Ice Cream Company Hits Bankruptcy After Court Orders $23.8 Million Payout

Rebel Creamery LLC has filed for Chapter 11 bankruptcy protection in Utah after a federal judge ordered the company to pay $23.785 million to Van Leeuwen Ice Cream LLC in a trademark dispute over ice cream packaging. The filing came less than a month after the judgment and two days after Rebel filed a notice of appeal.

Published on
Read : 2 min
Popular Ice Cream Company Hits Bankruptcy After Court Orders $23.8 Million Payout
© Shutterstock

The case centers on the appearance of the companies’ ice cream pints and whether Rebel’s packaging infringed Van Leeuwen’s trade dress. According to TheStreet, Rebel sells its keto-focused ice cream through major retailers including Walmart, Target and Kroger, while the bankruptcy filing lists both assets and liabilities between $10 million and $50 million.

Rebel Creamery Enters Chapter 11 After Federal Court Ruling

Rebel Creamery filed its Chapter 11 petition on August 14, 2026, in the U.S. Bankruptcy Court for the District of Utah. The company is based in Midway, Utah, and is identified in the filing as a dairy product manufacturer.

According to reports, Rebel reported between $10 million and $50 million in assets and the same range in liabilities, with between one and 49 creditors. The filing says the company is seeking to restructure its debt following the federal court order concerning the Van Leeuwen dispute.

The bankruptcy followed a July 16 decision by Judge Eric R. Komitee of the U.S. District Court for the Eastern District of New York. The court found Rebel liable for Lanham Act trade dress infringement, New York trade dress infringement and unfair competition, as well as dilution under New York General Business Law.

Komitee ordered Rebel to stop selling products bearing trade dress likely to be confused with Van Leeuwen’s and required the company to redesign its packaging. The court also awarded Van Leeuwen $23.785 million in profits from Rebel’s sales of infringing ice cream pints. The Chapter 11 filing also triggers an automatic stay affecting litigation against Rebel while the bankruptcy case proceeds.

Rebel Creamery files Chapter 11 after trademark judgment © Shutterstock

Court Found Packaging Similarities and Evidence of Confusion

The dispute focused on Van Leeuwen’s packaging, which uses monochromatic cardboard pints and matching lids, pastel colors, black cursive lettering and a minimalist design. Van Leeuwen introduced its current packaging design in August 2016.

Rebel Creamery was founded in September 2017, and its products began appearing in grocery stores in August 2018. Van Leeuwen became aware of Rebel’s packaging in late 2018 or early 2019 and filed suit in April 2021.

According to the court’s July 16 memorandum and order, the evidence established that Rebel infringed and diluted Van Leeuwen’s trade dress and did so intentionally. The court also found evidence of actual confusion involving consumers and grocery store employees, along with survey evidence considered during the case.

Komitee rejected Rebel’s good-faith remote-user defense and denied its counterclaims. He ruled that an accounting of profits was appropriate and ordered the $23.785 million disgorgement.

Rebel has challenged the judgment. Court docket information from PacerMonitor shows that the company filed a notice of appeal on August 12, 2026, with the U.S. Court of Appeals. The notice followed the July judgment and preceded the Chapter 11 filing by two days. Van Leeuwen was founded in 2008 and redesigned its packaging in 2014 before adopting the version at issue in 2016. Rebel’s bankruptcy case now proceeds in Utah while its appeal of the trademark judgment moves through the federal appellate process.

Leave a Comment

Share to...