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Rebel Creamery Files for Chapter 11 Bankruptcy After $23.8M Legal Judgment

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Utah-based low-carb ice cream maker Rebel Creamery has filed for Chapter 11 bankruptcy protection, seeking to restructure its debts following a costly legal battle with rival ice cream company Van Leeuwen.

                                                                      

The company filed for bankruptcy in Utah on Friday, reporting between $10 million and $50 million in assets and liabilities.

The filing comes just weeks after Rebel lost a lawsuit brought by Van Leeuwen over allegations that Rebel intentionally copied its packaging design. A judge awarded Van Leeuwen $23.8 million in damages in July, finding that Rebel had infringed and diluted Van Leeuwen’s trade dress.

                                                                     

According to the ruling, the judge also found that Rebel had provided misleading information about how its packaging was developed.

Rebel denied the allegations, arguing that it was unaware of Van Leeuwen’s packaging when the company launched in 2017. Van Leeuwen, founded in 2008, introduced its newer packaging in 2016.

Rebel subsequently appealed the ruling on August 12, just two days before filing for Chapter 11 bankruptcy.

                                                                                   

The bankruptcy proceedings will now determine how Rebel handles its debts while the company seeks to reorganize its business and continue operating.