Popular Low-Carb Ice Cream Brand Sold Across the U.S. Files for Chapter 11 Bankruptcy

Rebel Creamery LLC filed Chapter 11 after losing a $23.8M packaging battle to a rival.

Whatnow News Team News Writer
Representative Image, Rebel Creamery files for bankruptcy (Image credit: Samuel Papanola | Scopio | Created on Canva)

Rebel Creamery LLC has commenced a bankruptcy process. The Utah-based ice cream brand is a popular name across supermarkets and retail chains. Its filing comes two days after the company appealed a $23.785 million judgment awarded to rival Van Leeuwen Ice Cream over its packaging.

Note: A Chapter 11 bankruptcy filing is a legal process that allows a business to reorganize its debts, restructure obligations, and continue operating while working toward financial stability. Under Chapter 11, a debtor typically proposes a plan to repay creditors over time, subject to court approval. A Chapter 11 filing does not necessarily mean a business is closing or going out of business. For additional information, readers are encouraged to contact the business directly.

Overview of the Filing

Court records on the RK Consultants, show that the company submitted a Chapter 11 petition on August 14, 2026. Authorized representative Austin Archibald signed the petition before it was submitted to the court

Attorney Michael Johnson of Ray Quinney & Nebeker is representing Rebel Creamery LLC in the case.

The proceedings are currently taking place in the U.S. Bankruptcy Court for the District of Utah.

According to Fox Business, the ice cream brand listed approximately $13.78 million in assets and $23.85 million in liabilities. This suggests that the company faces a significant financial gap.

In addition, the petition includes a list of creditors with the largest unsecured creditors. One of these is Van Leeuwen, a nearly 18-year-old ice cream company from New York, which made a $23.785 million claim. Rebel Creamery LLC has disputed the claim and identified the judgment as being under appeal.

The company also reported approximately $5.22 million in cash and cash equivalents, $5.65 million in inventory, and $2.59 million in accounts receivable.

A summary of the Chapter 11 petition is provided here:

  • Filing Date: August 14, 2026
  • Court and Jurisdiction: U.S. Bankruptcy Court for the District of Utah
  • Type of Filing: Active, Voluntary Petition
  • Chapter: 11
  • Case Number: 26-25006
  • Estimated Assets: Between $10,000,001 and $50 million
  • Estimated Liabilities: Between $10,000,001 and $50 million
  • Estimated Creditors: 1-49

Packaging Dispute and Recent Court Appeal

According to Reuters, on July 16, 2026, a New York federal judge determined that Rebel Creamery LLC had copied elements of Van Leeuwen Ice Cream’s packaging.

The decision followed a 2021 lawsuit in which Van Leeuwen said that Rebel had used packaging that resembled its ice cream pints. As per the New York court, Rebel’s packaging could confuse consumers and ordered the company to redesign it. The court also ordered Rebel to pay Van Leeuwen $23.785 million from profits tied to the packaging.

Pacermonitor shows that Rebel Creamery LLC then appealed the ruling on August 12, 2026. With this step, it challenged the ruling made on July 16, 2026.

About the Company

Rebel Creamery LLC is the Utah-based company behind Rebel Creamery, a low-carb, high-fat ice cream brand sold through retailers across the U.S. The company focuses on products made with low-glycemic fibers and sweeteners, positioning them as lower-sugar alternatives to traditional ice cream.

The company website shows that it started developing its own ice cream range after its founders searched for a full-fat and low-sugar option.

In December 2017, the company launched a Kickstarter campaign that helped it generate $80,000. It later grew its retail presence, with the company’s products now available in thousands of stores nationwide.

The recent filing could allow Rebel Creamery LLC to manage its financial strain while continuing with appeal of the Van Leeuwen case.

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