Rebel Creamery files for bankruptcy after losing legal battle with rival Van Leeuwen
FILE: Rebel Creamery, the Utah-based ice cream maker that sells low-carb ice cream, has filed for Chapter 11 bankruptcy. (Getty Images)
Ice cream maker Rebel Creamery has filed for Chapter 11 bankruptcy protection.
The Utah-based creamery, which sells low-carb ice cream in major retailers across the U.S., filed the paperwork in Utah bankruptcy court Friday in an effort to restructure its debts.
Rebel Creamery’s bankruptcy
Big picture view:
According to the bankruptcy filing, the company has between $10 million and $50 million in both assets and debts.
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The backstory:
The bankruptcy comes a month after Rebel lost its legal battle with rival ice cream maker Van Leeuwen. A judge awarded Van Leeuwen a $23.8 million judgment in July after it sued Rebel for intentionally copying its packaging, according to The Street.
What they're saying:
The judge said Rebel lied about the packaging design process.
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"The evidence at trial left no doubt that Rebel infringed and diluted Van Leeuwen’s trade dress and did so intentionally," the judge reportedly wrote in the ruling.
The other side:
Rebel denied the allegations, claiming they were unaware of Van Leeuwen’s packaging when their company opened in 2017. Van Leeuwen was founded in 2008 and rolled out its latest packaging in 2016.
What's next:
Rebel filed an appeal to the judge’s ruling on Aug. 12, two days before it filed for Chapter 11 bankruptcy.
The Source: This report includes information from Rebel Creamery’s Chapter 11 bankruptcy filing and The Street.