A keto ice cream brand sold at major retailers throughout Houston filed for bankruptcy Friday after losing a legal battle with rival Van Leewuen in federal court.
Privately held Rebel Creamery, based in Utah, filed for Chapter 11 bankruptcy less than a month after a federal judge in New York awarded Brooklyn-based Van Leeuwen nearly $24 million of its profits. Van Leeuwen sued Rebel in 2021, alleging the company copied its packaging with the same monochromatic, pastel design with black script spelling out the brand name.
Rebel ice cream, which also touts its low carbohydrate content on its ice cream pints, is sold at most grocery stores in Houston. Rebel did not immediately return a request for comment.
Following a trial in the Eastern District of New York, Judge Eric Komitee last month found Rebel Creamery intentionally “infringed and diluted” the appearance of Van Leeuwen’s products. Komitee ordered Rebel to hand over the $23.8 million in profits, stop selling the products in dispute and redesign its packaging.
Rebel’s assets and liabilities are estimated at $10 million to $50 million, according to the bankruptcy filing.