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Rebel Creamery, the company behind Rebel Ice Cream, has filed for Chapter 11 bankruptcy protection after a federal court ordered the Utah-based brand to pay nearly $24 million to rival Van Leeuwen over its ice cream packaging.
The keto-friendly ice cream brand filed for bankruptcy on August 14 in the U.S. Bankruptcy Court for the District of Utah. The filing shows that Rebel had approximately $13.78 million in assets and $23.85 million in liabilities.
Why Rebel Creamery filed for bankruptcy
The bankruptcy filing comes less than a month after U.S. District Judge Eric Komitee ruled against Rebel in a legal dispute with Van Leeuwen Ice Cream.
Van Leeuwen sued Rebel in 2021, arguing that Rebel’s ice cream containers copied distinctive elements of its packaging. The dispute centered on the overall appearance of the pints, including pastel colors, minimalist layouts, black script lettering, and matching lids.
In a July 16, 2026 ruling, Komitee found Rebel liable for trade dress infringement, unfair competition and dilution. The judge also concluded that the infringement was intentional and ordered Rebel to stop selling products with packaging likely to be confused with Van Leeuwen’s design.
Rebel was ordered to pay $23.785 million
The court awarded Van Leeuwen $23.785 million from Rebel’s profits generated by the infringing ice cream pints.
The amount was lower than the $36.4 million Van Leeuwen initially sought. The court determined that a reduction was appropriate because some Rebel sales were attributable to demand for keto ice cream rather than the packaging itself.
The ruling also required Rebel to redesign its packaging so that its products would create a substantially different commercial impression from Van Leeuwen’s ice cream.
Rebel is appealing the court’s decision
The bankruptcy filing does not mean the legal dispute is over.
Rebel filed a notice of appeal on August 12, two days before submitting its Chapter 11 petition. The $23.785 million judgment is listed among Rebel’s unsecured liabilities as a disputed claim while the appeal proceeds.
Chapter 11 gives the company a legal process to reorganize its finances while the bankruptcy case moves forward. The filing therefore, does not necessarily mean that Rebel Ice Cream has stopped operating or that its products have immediately disappeared from stores.
Where Rebel Ice Cream is sold
Rebel Creamery is known for its low-carb and keto-friendly ice cream products and has built a national retail presence.
Its products are sold through major retailers including Walmart, Target, and Kroger, as well as other grocery chains such as Safeway.
The company’s bankruptcy filing means its future will now depend on the restructuring process, its appeal of the Van Leeuwen judgment, and its ability to continue operating while addressing its financial obligations.