Beloved ice cream brand Rebel files for bankruptcy after bizarre legal battle that left them owing MILLIONS

By Daily Mail (U.S.) | Created at 2026-08-17 16:34:55 | Updated at 2026-08-17 17:20:55 1 hour ago

By JULIA DZURILLAY

Updated: 16:37 BST, 17 August 2026

A small ice cream company is freezing its business operations after filing for Chapter 11 bankruptcy. 

Rebel Creamery, a Utah-based ice cream brand sold at major retailers like Walmart, Kroger and Safeway, filed for Chapter 11 bankruptcy protection as it appeals a staggering sum recently awarded to Van Leeuwen Ice Cream.

According to court filings, Rebel Creamery reported about $13.78 million in assets and a staggering $23.85 million in liabilities. 

The bankruptcy comes just weeks after a federal judge ruled Rebel intentionally infringed Van Leeuwen's packaging by using branding that was too similar to the competing ice cream company's pastel-colored pints with black script lettering.

'The evidence at that trial left no doubt that Rebel infringed and diluted Van Leeuwen's trade dress and did so intentionally,' US District Judge Eric Komitee wrote in a July 16 memorandum and order. 

The judgment ordered Rebel to pay Van Leeuwen $23.785 million and to redesign its pints so that it cannot be confused with the competitor's products. 

Rebel has since disputed the claim and is appealing the ruling.

Van Leeuwen originally sought $36.4 million, but the court ultimately delivered a lower judgement because some consumers bought Rebel for its keto benefits rather than its packaging.

Van Leeuwen has been in business for over 15 years, starting out as an ice cream truck in New York City

A judgment ordered Rebel to pay $23.785 million and to redesign its pints so that it cannot be confused with Van Leeuwen's products

On social media, fans of both ice creams noticed the similarities. One Reddit user wrote: 'the font treatment is near identical.'

'Go look at Van Leeuwen’s packaging - the colors and lettering are very distinctive and Rebel’s look extremely similar,' another Reddit user wrote. 

'I think it’s very possible that if saw pints of Van Leeuwen at the grocery store I would assume it was made by the same company as Rebel.'

Rebel was launched in 2017 with a innovative angle as an indulgent, full-fat ice cream designed for consumers seeking zero-sugar options.

On the company's website, the brand boasts keto diet-friendly offerings that are low carb and high fat with no sugar added. That includes ice cream bars and beloved pints flavors like chocolate caramel nut and banana peanut butter chip.

'We had been making homemade ice cream for years before we decided to stop eating sugar,' Rebel states. 'After switching our fuel source from sugar to healthy fats, we had never felt better.'

Chapter 11 does not necessarily mean Rebel will disappear from supermarket freezers altogether.

The bankruptcy process allows a company to continue operating while it reorganizes and deals with creditors. Rebel's filing came as the company pursues its appeal of the $23.785 million judgment.

Rebel Ice Cream still remains available for sale on the company's website, although there's a three to four week delay

For now, the company is still serving up its ice cream online, although its listings currently show sales as paused with estimated shipping times of three to four weeks. 

Van Leeuwen introduced its current packaging in 2016, a year before Rebel was founded.

Brothers Ben and Pete Van Leeuwen, along with Laura O'Neill, famously launched the company with just $60,000 borrowed from friends and family. 

That was enough to buy and convert two mail trucks into ice cream vans – before opening its first brick-and-mortar shop in Greenpoint around 2011. 

Van Leeuwen has since expanded to several storefronts, as well as pints sold at major retailers like Target, Shoprite, Acme and Whole Foods.  

The Daily Mail has reached out to Rebel Ice Cream for comment.  

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