Rebel Creamery Files Bankruptcy After $24 Million Judgment

Rebel Creamery, a Utah-based low-carb ice cream manufacturer, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Utah on August 14, 2026. The filing follows a July 16 ruling by U.S. District Judge Eric R. Komitee, who ordered the company to pay $23.785 million in disgorged profits to rival Van Leeuwen Ice Cream.

Judge Komitee found that Rebel intentionally infringed and diluted Van Leeuwen's trade dress by copying its minimalist, pastel-colored packaging and black cursive lettering. The court determined that Rebel's founders acted in bad faith and lied about the design process, noting that the similarity of the design features was not random. As a result, Rebel must redesign its packaging to avoid further infringement.

Rebel reported assets of approximately $13.78 million against liabilities of $23.85 million, with the Van Leeuwen judgment serving as its largest liability. The company filed an appeal against the judgment on August 12, two days before the bankruptcy filing, and maintains that its founders were unaware of Van Leeuwen's packaging during its 2017 launch. While the bankruptcy allows Rebel to continue selling products at retailers such as Walmart, Target, and Kroger, Van Leeuwen characterized the move as defiance, asserting that Rebel chose to profit from infringement throughout five years of litigation.