A brand of ice cream sold nationwide at stores such as Walmart, Kroger, and Safeway has filed for Chapter 11 bankruptcy.
Rebel Creamery filed for bankruptcy protection in Utah as it appeals a judgment that awarded $23.785 million to rival Van Leeuwen Ice Cream, Fox Business reported.
In the Chapter 11 bankruptcy filing, Rebel said it had about $13.78 million in assets and $23.85 million in liabilities.
Rebel Creamery said the judgment involving Van Leeuwen Ice Cream is under appeal, but accounts for most of the unsecured liabilities that Rebel listed in the bankruptcy filings. But it is not the only reason for the bankruptcy filing.
A judge ruled that Rebel Creamery intentionally infringed and diluted Van Leeuwen’s trade dress on its ice cream packages after the latter sued, saying that Rebel copied its ice cream pints design in 2021, Fox Business reported.
The judge agreed and told Rebel to stop selling products that look like Van Leeuwen’s.
Rebel boasts that its ice cream is a keto-friendly option with the “lowest glycemic index ice cream in the market,” USA Today reported.
Rebel was founded in 2017. In addition to stores, the ice cream is also found in parlors in more than a dozen states.
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