MIDWAY, Utah, Aug. 17 (Our Utah Times) — Rebel Creamery LLC, a Utah-based maker of ice cream sold through grocery retailers nationwide, has filed for Chapter 11 bankruptcy protection while appealing a $23.785 million federal court judgment in favor of rival Van Leeuwen Ice Cream.
Rebel filed its petition Aug. 14, 2026, in the U.S. Bankruptcy Court for the District of Utah. Its bankruptcy schedules list about $13.78 million in assets and $23.85 million in liabilities.
The filing puts the company’s finances, its dispute with Van Leeuwen and the future of its business under the supervision of the bankruptcy court. The available court records do not say that the judgment was the only reason Rebel sought bankruptcy protection.
What does Rebel owe?
Rebel’s schedules list Van Leeuwen as an unsecured creditor with a $23.785 million claim. The claim is tied to the federal court judgment over Rebel’s ice cream packaging.
Rebel marked the claim as disputed and said the judgment is being appealed. Rebel filed its appeal Aug. 12, two days before the bankruptcy case began.
An unsecured creditor generally does not hold specific collateral securing its claim. In a Chapter 11 case, the company usually remains in control of its business while it seeks to restructure its debts or pursue another court-approved plan. Payment to creditors depends on the company’s assets, income and the outcome of the bankruptcy process.
Rebel’s voluntary petition estimated its assets and liabilities at between $10 million and $50 million. The petition also stated that funds would be available for distribution to unsecured creditors.
What did the federal court decide?
Van Leeuwen sued Rebel in 2021, alleging that Rebel copied the appearance of Van Leeuwen’s ice cream pint packaging. The dispute centered on trade dress, a legal term for the visual features that identify a product or brand, such as packaging design.
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 judge wrote that “the evidence at trial left no doubt that Rebel infringed and diluted Van Leeuwen’s trade dress and did so intentionally.”
The court awarded Van Leeuwen $23.785 million, described in the ruling as Rebel’s profits from products bearing the allegedly infringing packaging. The court also ordered Rebel to stop selling products in that packaging and redesign it.
Rebel’s appeal could affect the judgment, but the available records do not show the current status of the appeal, whether the judgment has been stayed or secured, or how Van Leeuwen will participate in the bankruptcy case.
What assets does Rebel report?
Rebel’s 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 money owed to the company, while inventory includes products and materials held for sale or use.
Those figures are reported values in the bankruptcy schedules, not an independent valuation of what the assets will bring in a sale or liquidation. The schedules do not provide the company’s revenue, earnings, audited financial statements or full list of creditors.
What does the filing mean for customers and workers?
The records and supplied court summaries do not establish whether Rebel’s stores, suppliers or workers will face immediate changes. They also do not identify the company’s employees, facilities or operating status after the filing.
Because Rebel products are sold through retailers nationwide, the case has potential implications for grocery customers and businesses that sell or supply the products. However, the available records do not say whether products will be removed from store shelves, whether orders will continue or whether the company will change its packaging while the appeal and bankruptcy case proceed.
The bankruptcy court will determine how Rebel’s debts are handled and whether the company can reorganize. The appeal will separately address the federal court ruling and the $23.785 million judgment.
