Key facts
- Rebel Creamery has filed for Chapter 11 bankruptcy protection.
- The company owes Van Leeuwen Ice Cream $23.785 million due to a trade-dress infringement lawsuit.
- Rebel Creamery is appealing the judgment.
- The company reported assets between $10 million and $50 million and liabilities of $23.85 million.
- Rebel's packaging was found to be intentionally similar to Van Leeuwen's, causing consumer confusion.
Rebel Creamery has filed for Chapter 11 bankruptcy protection in Utah, citing a significant judgment awarded to rival Van Leeuwen Ice Cream in a trade-dress dispute. The company reported assets of approximately $13.78 million and liabilities of $23.85 million, with the $23.785 million judgment from Van Leeuwen accounting for nearly all of its unsecured liabilities.
Rebel Creamery filed its voluntary petition on August 14 in the U.S. Bankruptcy Court for the District of Utah. The company is appealing the judgment, which stems from a lawsuit filed by Van Leeuwen in April 2021. Van Leeuwen alleged that Rebel's ice cream pint packaging copied its own distinctive design, characterized by monochromatic pastel colors, black script lettering, and a minimalist aesthetic.
U.S. District Judge Eric Komitee ruled on July 16 that Rebel had intentionally infringed and diluted Van Leeuwen's trade dress, finding evidence of consumer confusion and bad faith. The court rejected Rebel's claims that its founders had not seen Van Leeuwen's design prior to creating their own. Judge Komitee ordered Rebel to cease selling products with the infringing packaging and to redesign its pints. While Van Leeuwen sought $36.4 million in profits, the award was reduced by 33% due to factors like demand for keto-friendly options, resulting in the $23.785 million figure.
Rebel filed its notice of appeal on August 12, two days before seeking bankruptcy protection. The Chapter 11 filing allows Rebel to restructure its finances under court supervision while it pursues its separate appeal against the judgment in New York. The company expects funds to be available for unsecured creditors.