Rebel Creamery ice cream, with Long Island locations, files for bankruptcy after $23.8 million trademark judgment

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 copied Van Leeuwen’s packaging designs, ordering the Utah ice cream company to redesign its ice cream pint packages and pay its competitor $23.8 million over trademark violations, according to Reuters.

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

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, bankruptcy experts have said.

Check back for updates on this developing story.