Rebel Creamery, whose ice cream is sold nationwide, files for bankruptcy

Rebel Creamery filed for Chapter 11 bankruptcy while appealing a $23.785 million judgment in favor of its rival Van Leeuwen Ice Cream, stemming from a dispute over the design of its product packaging.

According to Fox Business, Rebel Creamery filed for bankruptcy protection on Aug. 14 with the U.S. Bankruptcy Court for the District of Utah. The company reported approximately $13.78 million in assets and $23.85 million in liabilities. Its ice cream is sold at Walmart, Kroger, Safeway and other supermarket chains nationwide.

Van Leeuwen is listed among Rebel's unsecured creditors with a claim of $23.785 million, corresponding to the federal judgment. Rebel noted that the claim is in dispute and that the ruling is currently under appeal.

The judgment followed a lawsuit filed by Van Leeuwen in 2021, in which it accused Rebel of copying distinctive elements of its ice cream packaging.

Federal Judge Eric Komitee ruled on July 16 that Rebel had intentionally infringed upon and diluted Van Leeuwen's trade dress. The court described that trade dress as monochromatic cardboard containers with matching lids, a palette consisting primarily of pastel colors, black cursive lettering and an overall minimalist design.

Komitee concluded that Rebel's packaging was similar and that the evidence supported findings of consumer confusion and bad faith. Furthermore, he ordered Rebel to stop selling products whose packaging could be confused with that of Van Leeuwen and to redesign its packaging.

Van Leeuwen had sought $36.4 million in damages based on Rebel's profits. However, the court reduced that amount by 33%, finding that part of the sales was driven by demand for keto ice cream—which is considered a healthier option—and not exclusively by the packaging design.