Rebel Creamery files for bankruptcy after $23.8m packaging lawsuit

Rebel Creamery, a Utah-based producer of low-carb and keto-friendly ice cream, has filed for Chapter 11 bankruptcy protection following a major legal defeat regarding its product packaging.

A federal court in New York ruled that Rebel infringed upon the trade dress of Van Leeuwen Ice Cream. The judge cited similarities in the minimalist design, including the use of monochromatic cardboard pints, pastel color palettes, and specific black script lettering. As a result of the ruling, Rebel was ordered to pay Van Leeuwen approximately $23.8 million and must redesign its packaging to avoid further infringement.

The bankruptcy filing, made shortly after the court decision, allows Rebel to continue daily operations and pause debt collection efforts while the company pursues an appeal of the judgment. Rebel Creamery, which launched via Kickstarter in 2017, currently distributes products through major retailers such as Walmart, Target, and Kroger.