Rebel Creamery ice cream, sold on Long Island, files for bankruptcy

The parent company behind ice cream brand Rebel Creamery has filed for Chapter 11 bankruptcy after losing a trademark infringement case to competitor Van Leeuwen, according to court documents.

Utah-based Rebel Creamery LLC filed for bankruptcy protection to restructure its debts on Friday in U.S. Bankruptcy Court for the District of Utah, according to court documents and media reports. Rebel sells its products at grocery stores across the country, including at Stop & Shop, ShopRite and Best Market on Long Island, according to the company’s website.

In July, New York federal Judge Eric Komitee ruled that Rebel "intentionally" copied Van Leeuwen’s packaging designs, ordering the Utah ice cream company to redesign its pint packages and pay its competitor $23.8 million over trademark violations, according to Reuters and court documents. 

In response to questions about the trademark lawsuit and bankruptcy, Rebel Creamery said in an email that the company was “appealing the decision” and that its products “will continue to be widely available.”

Brooklyn-based Van Leeuwen, which sells its products in ShopRite, Target and Walgreens, also has two stores in Roslyn and at Roosevelt Field mall.

Officials with Van Leeuwen could not be reached for comment.

Rebel said in its bankruptcy petition that it had between $10 million and $50 million in assets and liabilities.

The bankruptcy filing does not mean the business will be shuttering.

Unlike Chapter 7 bankruptcy cases, where the goal is to sell off assets and cease business operations, Chapter 11 procedures are about restructuring debts to continue operations. 

Local marketing experts said brands should always be aware of competitors to avoid inadvertently finding themselves in hot water over trademark. 

“Brands need to make sure they have proper legal representation and dot every i and cross every t to make sure they’re not violating any other brand,” said Doug Drotman, public relations professional and president of Drotman Communications in Commack.

“Obviously, whatever you think represents your brand, someone else might have thought of it first, and you just need to make sure you’re safe in that respect,” he said.