Rebel Creamery files for Chapter 11 bankruptcy after losing a trademark lawsuit against rival brand Van Leeuwen.
Rebel Creamery filed for Chapter 11 bankruptcy protection on Friday, listing between $10 million and $50 million in assets and debts. The Utah-based company, known for its low-carb products sold at major retailers like Walmart and Kroger, faces the filing after losing a lawsuit against rival brand Van Leeuwen. In 2021, Van Leeuwen sued Rebel Creamery, alleging that the keto-friendly brand intentionally copied its pastel, minimalistic packaging designs. A judge ruled that Rebel Creamery infringed on Van Leeuwen's trade dress and ordered the company to pay nearly $23.8 million in profits. While Rebel Creamery denied the allegations, the court found that the company intentionally used packaging that was confusingly similar to the New York-based chain's branding. Rebel Creamery submitted an appeal in the case two days before filing for bankruptcy. Van Leeuwen operates approximately 100 shops across the United States.