Major ice cream brand files Chapter 11 bankruptcy after lawsuit

Enjoying a serving of frozen dessert connected a blistery summertime day, oregon astatine immoderate clip for that matter, has grown successful popularity arsenic crystal pick store manufacture maturation roseate by 5.8% to $7.4 cardinal successful the 5 years done 2025, according to IBISWorld. The manufacture grew by 0.9% successful 2025 alone.

Ice pick institution contention has led to tribunal battles successful immoderate cases, with 1 institution filing for bankruptcy extortion arsenic it faces a lawsuit.

Popular crystal pick shaper Rebel Creamery LLC, which sells its Rebel Ice Cream astatine large retailers specified arsenic Walmart, Target, and Kroger supermarkets, filed for Chapter 11 bankruptcy extortion to restructure its debts aft losing a trademark infringement suit judgment.

Rebel Creamery files for bankruptcy

The Midway, Utah-based debtor filed its petition successful the U.S. Bankruptcy Court for the District of Utah connected Aug. 14, listing $10 cardinal to $50 cardinal successful assets and liabilities, according to tribunal documents.

All litigation against Rebel Creamery is taxable to an automatic enactment portion the debtor's bankruptcy lawsuit proceeds successful court.

The debtor filed its petition aft Judge Eric Komitee of the U.S. District Court for the Eastern District of New York connected July 16 awarded plaintiff crystal pick institution Van Leeuwen $23.8 cardinal successful disgorged profits from Rebel Creamery for violating its trademark rights based connected the defendant's usage of akin merchandise packaging.

Trademark rights usurpation ruling

In his order, Komitee ruled that that Rebel Creamery intentionally copied Van Leeuwen's branding and ordered the suspect to redesign its crystal pick packaging, which consists of cardboard monochromatic pints with matching monochromatic lids, usage of a pastel colour palette, achromatic publication typeface lettering with an exaggerated superior letter, and an wide minimalistic plan aesthetic, according to tribunal documents connected Justia.

The tribunal recovered that determination was grounds of existent disorder successful the marketplace betwixt Van Leeuwen and Rebel, according to the order.

"The grounds astatine proceedings near nary uncertainty that Rebel infringed and diluted Van Leeuwen's commercialized formal and did truthful intentionally," Komitee wrote successful his order. "As a result, Rebel volition beryllium enjoined from selling the infringing products and required to redesign its packaging to debar immoderate further infringement."

"Rebel volition besides beryllium required to disgorge its profits from selling infringing pints," Komitee wrote.

Judge awards plaintiff $23.8 cardinal

"Van Leeuwen is entitled to $23.785 cardinal of Rebel's profits from selling infringing crystal pick pints," according to the order. "The Clerk of the Court is respectfully directed to participate judgement for plaintiff and to adjacent the case."