Rebel Creamery seeks Chapter 11 protection after $23.8 million judgment in packaging dispute

Rebel Creamery, which markets low-carb ice cream under the Rebel brand in retailers such as Walmart, Target and Kroger, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Utah on Friday. The filing lists assets and liabilities each between $10 million and $50 million.

The filing follows a federal court ruling that ordered Rebel to disgorge $23.785 million in profits to New York-based Van Leeuwen. U.S. District Judge Eric Komitee concluded that Rebel had intentionally copied Van Leeuwen’s pastel-colored, monochrome pint packaging, which features matching lids, black script lettering and a minimalist design, creating a likelihood of consumer confusion.

"The evidence at trial left no doubt that Rebel infringed and diluted Van Leeuwen’s trade dress and did so intentionally," the judge wrote.

Komitee also enjoined Rebel from selling the disputed packaging and required the company to redesign its pints. Rebel, which denied the allegations and said its founders had not seen Van Leeuwen’s packaging when creating their own design, appealed the judgment on August 12, two days before the bankruptcy filing.

Van Leeuwen, founded in 2008 and expanded to roughly 100 scoop shops nationwide, had introduced the contested packaging in 2016. Rebel’s similar pints entered grocery stores in 2018, and court documents indicate the similarity was not coincidental.