Rebel Creamery seeks Chapter 11 protection while appealing $23.8 million Van Leeuwen judgment

Rebel Creamery LLC filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the District of Utah on Aug. 14, reporting roughly $13.78 million in assets against $23.85 million in liabilities. The filing lists a $23.785 million claim from Van Leeuwen Ice Cream, stemming from a federal trade-dress judgment, as a disputed amount while the company pursues an appeal.

The Utah filing shows Rebel holding about $5.22 million in cash and equivalents, $2.59 million in accounts receivable and $5.65 million in inventory. The company’s manager, Austin Archibald, and bankruptcy counsel Michael Johnson of Ray Quinney & Nebeker are identified in the petition.

The dispute originates from a 2021 lawsuit in which Van Leeuwen alleged that Rebel’s ice-cream packaging copied the distinctive design of its pints, including a monochromatic cardboard container, pastel colors, black script lettering and a minimalist style. U.S. District Judge Eric Komitee ruled in July that Rebel intentionally infringed and diluted Van Leeuwen’s trade dress, finding evidence of consumer confusion and bad faith. He ordered Rebel to cease selling the contested packaging and to redesign its product.

Van Leeuwen initially sought $36.4 million in damages, but the court reduced the award by one-third, concluding that a portion of sales was driven by demand for keto and “better-for-you” ice cream rather than the packaging itself. The reduced judgment left Van Leeuwen entitled to $23.785 million.

Rebel’s bankruptcy schedules show the Van Leeuwen judgment accounts for nearly all of its unsecured liabilities. The filing estimates the company’s total assets and liabilities between $10 million and $50 million and indicates that funds may be available for distribution to unsecured creditors. Court documents do not confirm that the Van Leeuwen judgment alone caused the bankruptcy filing.