Rebel Creamery, the keto ice cream brand sold at major retailers recently filed for Chapter 11 bankruptcy following a $23.8 million judgment in a trade dress infringement case brought by Van Leeuwen Ice Cream.
The bankruptcy filing comes less than a month after a New York federal court found that Rebel had intentionally infringed and diluted Van Leeuwen’s distinctive packaging trade dress. While Rebel is appealing the decision, its Chapter 11 filing could provide the company with an opportunity to reorganize while addressing the substantial judgment.
Patrick Collins, a partner at Farrell Fritz, spoke with Inc. about the bankruptcy filing and what may come next.
From the article:
“Companies that file Chapter 11 cases are permitted, unless the court orders otherwise, to remain in possession of their assets and continue to operate their businesses while they attempt to reorganize their financial affairs,” Collins said.
Collins said key developments could include whether the company seeks debtor-in-possession financing, deadlines for creditors to submit claims, and, ultimately, the terms of Rebel’s proposed reorganization plan.
Read the full article here: Rebel Creamery’s Bankruptcy Filing Came 2 Weeks After a $23.8 Million Verdict. Experts See a Strategy