MIDWAY, Utah, Aug. 17 (Our Utah Times) — Rebel Creamery LLC, a Utah-based maker of ice cream products sold through grocery stores nationwide, filed for Chapter 11 bankruptcy protection after a federal judge ordered it to pay Van Leeuwen Ice Cream $23.785 million in a dispute over packaging.
The company filed its case Aug. 14, 2026, in the U.S. Bankruptcy Court for the District of Utah. Rebel’s bankruptcy schedules list about $13.78 million in assets and $23.85 million in liabilities.
The filing came two days after Rebel appealed the judgment. The company listed Van Leeuwen as an unsecured creditor and marked the claim as disputed, saying the judgment remains under appeal.
The records do not establish that the judgment was the only reason Rebel sought bankruptcy protection.
What led to the filing?
Van Leeuwen sued Rebel in 2021, alleging that Rebel copied the look of its ice cream pint packaging. The dispute centered on “trade dress,” a legal term for the overall appearance of a product or package that can identify its source. It can include elements such as colors, shapes, designs and layout.
In a July 16, 2026, memorandum and order, U.S. District Judge Eric Komitee found that Rebel intentionally infringed and diluted Van Leeuwen’s trade dress. “The evidence at trial left no doubt that Rebel infringed and diluted Van Leeuwen’s trade dress and did so intentionally,” Komitee wrote.
The court awarded Van Leeuwen $23.785 million, described in the court ruling as Rebel’s profits from products bearing the infringing packaging. The court also ordered Rebel to stop selling products in that packaging and redesign it.
Rebel filed its appeal Aug. 12. The supplied court-record summaries do not show the appeal’s current status or whether the judgment has been stayed or secured.
What does Chapter 11 mean?
Chapter 11 is a form of bankruptcy protection that generally allows a company to keep operating while it develops a plan to address its debts. The process can give a company time to reorganize, sell assets, negotiate with creditors or seek new financing.
A bankruptcy filing does not by itself mean that Rebel’s stores or products will immediately disappear. The available records do not state whether the company has stopped operating, how many workers it employs or what changes retailers and customers may see.
Rebel’s petition estimated its assets and liabilities each fell between $10 million and $50 million. The petition also said funds would be available for distribution to unsecured creditors—those whose claims generally are not backed by specific collateral.
What assets did Rebel report?
The schedules list about $5.22 million in cash and cash equivalents, $2.59 million in accounts receivable and $5.65 million in inventory. Accounts receivable are payments customers or business partners owe the company. Inventory includes products and materials held for sale or use.
The schedules do not provide a complete picture of Rebel’s business, including its revenue, earnings, employees, facilities or operating costs. They also do not identify all of the company’s creditors or state how much other unsecured creditors are owed.
What could happen next?
The bankruptcy court will oversee Rebel’s case and the treatment of its creditors. Van Leeuwen’s claim could be affected by the appeal and by the bankruptcy process. The available records do not show whether Van Leeuwen has filed an objection in the bankruptcy case.
For grocery retailers, suppliers, workers and customers, the near-term effects are not clear from the filing information available. Rebel products have been identified in coverage as being sold by Walmart, Kroger, Safeway and other retailers, but the available material does not include statements from those companies about inventory, orders or future sales.
The key financial issue is the gap between Rebel’s reported assets and liabilities. The company listed roughly $10.1 million less in assets than liabilities, with the Van Leeuwen judgment accounting for nearly all of the listed liabilities. But the bankruptcy records alone do not determine whether Rebel will continue operating, restructure, sell its business or liquidate assets.
