The grocery store ice cream aisle might have a new look soon, as Rebel Creamery filed for Chapter 11 bankruptcy last Friday.
Founded in 2017 by Utah couple Austin and Courtney Archibald, Rebel Creamery makes low-carb, keto-friendly ice cream. The Midway-based brand originally launched as a successful Kickstarter campaign that raised roughly $80,000, according to Rebel’s website. From there, increasing consumer demand allowed Rebel to scale and expand into national retailers like Walmart, Target and Kroger.
However, Rebel has faced legal issues over its packaging since April 2021, when Brooklyn-based Van Leeuwen Ice Cream initiated its original trade dress lawsuit. The case went through a federal court in New York, where Rebel lost. On July 16, 2026, as a result of the ruling, the judge ordered the company to pay Van Leeuwen nearly $23.8 million.
In the court documents, the ruling noted that Van Leeuwen had redesigned its packaging to its current look in 2016, a year before Rebel was founded. The judge cited similarities in the ice cream packaging, specifically the use of monochromatic cardboard pints with matching lids, a primarily pastel color palette, black script lettering with an exaggerated capital letter and an overall minimalist design.
On August 14, 2026, less than a month after losing the lawsuit, Rebel filed for bankruptcy. Two days before the filing, the company submitted an appeal in the trade dress case.
For now, Rebel will remain on shelves. The Chapter 11 filing allows the company to maintain day-to-day operations while pausing all debt collection efforts, including the almost $23.8 million payout to Van Leeuwen, as Rebel navigates the appeals process. However, the federal court has ordered that Rebel “must redesign its packaging to avoid using the Van Leeuwen trade dress elements.”
While the company has made no official statement, Rebel has taken to Reddit to comment, “It’s just a Chapter 11 filing to protect us while we go through the appeal process. The business is still healthy … and we aren’t going anywhere. We are optimistic about the appeal.”
In the same r/keto subreddit forum, responses have been supportive in a strong reflection of its loyal customer base.
“I’m honestly not sure I could have survived the first few months of a keto diet without Rebel as a stopgap to ease me in,” one user wrote, while another claimed to have “lost 140 lbs on Butter Pecan.”
Many users were relieved to learn that Rebel’s product will remain on shelves during the bankruptcy process.
“I’ve loved your ice cream since starting keto four years ago,” writes one user. “Hope you’ll stick around.”
