MIDWAY, Utah, Aug. 17 (Our Utah Times) — Rebel Creamery LLC, a Utah-based maker of low-carb ice cream, filed for Chapter 11 bankruptcy protection Aug. 14 while appealing a $23.785 million federal judgment awarded to rival Van Leeuwen Ice Cream.
The filing, in the U.S. Bankruptcy Court for the District of Utah, lists about $13.78 million in assets and $23.85 million in liabilities. The figures show the financial pressure facing the company, its creditors and the retailers that sell its products. The bankruptcy records do not identify the company’s employees, revenue, earnings or current operating status.
What does the bankruptcy filing show?
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. The company estimated in its voluntary petition that both its assets and liabilities were between $10 million and $50 million.
The petition also said funds would be available for distribution to unsecured creditors. Unsecured creditors generally are those without specific collateral securing their claims. The schedules list Van Leeuwen as an unsecured creditor with a $23.785 million claim.
Rebel marked that claim as disputed and said the underlying judgment is under appeal. The records do not show whether the appeal has been resolved, whether the judgment has been stayed or secured, or whether Van Leeuwen has objected to the bankruptcy filing.
Chapter 11 is a form of bankruptcy protection that allows a business to seek a reorganization while addressing its debts. A filing does not by itself determine how much each creditor will receive. That will depend on the bankruptcy process, the company’s assets and the treatment of its claims.
Why does Rebel owe Van Leeuwen money?
The dispute began in 2021, when Van Leeuwen sued Rebel over the appearance of Rebel’s ice cream pint packaging. The case involved trade dress, a type of intellectual property that can protect the distinctive visual design or overall appearance associated with a product or brand.
On July 16, 2026, U.S. District Judge Eric Komitee ruled that Rebel had intentionally infringed and diluted Van Leeuwen’s trade dress. In his memorandum and order, Komitee wrote: “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, an amount described in the court ruling as representing Rebel’s profits from products sold with the packaging at issue. The court also ordered Rebel to stop selling products in that packaging and redesign it.
Rebel appealed the ruling Aug. 12, two days before filing for bankruptcy protection. The appeal means the company continues to challenge the judgment, but the bankruptcy schedules still list the award as a claim against Rebel.
Does the judgment explain the bankruptcy?
The Van Leeuwen claim accounts for most of the liabilities listed in Rebel’s schedules. But the bankruptcy and federal court records do not establish that the judgment was the sole reason Rebel filed for Chapter 11.
The records also do not provide a complete picture of Rebel’s other debts, its sales or its future plans. They do not identify specific effects on workers, suppliers, grocery stores or communities.
For customers, the immediate effect is uncertain. The filing does not, by itself, show whether Rebel products will remain on store shelves or whether production will change. Those outcomes will depend on the company’s operations during the bankruptcy and on decisions by the bankruptcy court and the parties involved.
The case now places two legal processes side by side: Rebel’s appeal of the trade-dress judgment and its bankruptcy proceeding in Utah. The appeal will address whether the federal judgment stands, while the bankruptcy case will address how Rebel’s debts and assets are handled.
