Utah-based ice cream maker seeks bankruptcy protection following a court-ordered payout to rival Van Leeuwen for trademark infringement.
Rebel Creamery LLC filed for Chapter 11 bankruptcy protection on Aug. 14, citing $10 million to $50 million in assets and liabilities. The move follows a July 16 ruling awarding Van Leeuwen $23.8 million in disgorged profits for trademark violations tied to Rebel’s product packaging.
The ice cream industry has grown 5.8% to $7.4 billion over the past five years, intensifying competition and legal disputes. Rebel’s petition halts all litigation under an automatic stay while the case proceeds in Utah bankruptcy court.
Rebel sells products at major retailers including Walmart, Target, and Kroger, but the $23.8 million judgment triggered its restructuring effort.