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Rebel Creamery, a Utah-based ice cream maker known for its low-carb products, has filed for Chapter 11 bankruptcy protection after being ordered to pay $23.8 million to Van Leeuwen Ice Cream in a packaging dispute. The filing was made on Wednesday (August 14) in the U.S. Bankruptcy Court for the District of Utah, according to court records cited by Fox Business.
The bankruptcy filing comes less than a month after U.S. District Judge Eric Komitee ruled that Rebel Creamery had intentionally copied Van Leeuwen's trade dress, which includes pastel-colored, monochrome pints with matching lids, black script lettering, and a minimalist design. According to New York Post, Judge Komitee stated, "The evidence at trial left no doubt that Rebel infringed and diluted Van Leeuwen’s trade dress and did so intentionally." The court ordered Rebel to stop using the disputed packaging and redesign its ice cream pints to avoid further infringement.
Rebel Creamery, which sells its products in major retailers like Walmart, Kroger, Safeway, and Target, reported approximately $13.78 million in assets and $23.85 million in liabilities. The $23.785 million judgment from Van Leeuwen makes up nearly all of Rebel's unsecured debts. The company listed the claim as disputed and has filed an appeal against the ruling.
Van Leeuwen sued Rebel in 2021, alleging that Rebel's packaging closely resembled its own, leading to confusion among customers. The court found evidence of consumer confusion and determined that parts of Rebel's testimony about its design process were fabricated. Despite denying the allegations and arguing its founders had not seen Van Leeuwen’s design, Rebel was found liable for both infringement and unfair competition.
Filing for Chapter 11 allows Rebel Creamery to reorganize its debts and continue operating while the legal appeal moves forward. The company’s website remains active, and it has stated that funds should be available for unsecured creditors. The outcome of Rebel’s appeal and its ability to restructure its finances under court supervision will determine its future operations.