By Rajwa Quasim
Utah-based keto-friendly ice cream maker Rebel Creamery has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Utah, just weeks after losing a yearslong trademark fight that cost the company $23.8 million.
According to the bankruptcy filing, the company listed $13.78 million in assets against $23.85 million in liabilities, including roughly $5.22 million in cash, $2.59 million in receivables and $5.65 million in inventory.
An employee of Van Leeuwen spotted Rebel Creamery in late 2018 and informed the company’s founders. Van Leeuwen sued Rebel in 2021, alleging that the company had copied its packaging.
Van Leeuwen claimed Rebel copied its trade dress, or the overall appearance of its products, including its monochromatic cardboard pints, matching lids, pastel colors, black script lettering and minimalist design. Initially, Van Leeuwen sought $36.4 million in damages from Rebel.
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On July 16, U.S. District Judge Eric Komitee ruled that Rebel had intentionally infringed on and diluted Van Leeuwen’s trade dress. The judge found that the similarities between the brands went beyond coincidence and that there had been actual confusion among customers. The ruling ordered Rebel to redesign its pints.
Komitee wrote, “The evidence at trial left no doubt that Rebel infringed and diluted Van Leeuwen’s trade dress and did so intentionally. As a result, Rebel will be enjoined from selling the infringing products and required to redesign its packaging to avoid any further infringement. Rebel will also be required to disgorge its profits from selling infringing pints.”
In 2024, a woman wrote to Rebel Creamery about her experience confusing the two brands because of their similar packaging. Her account later helped the court reach its decision. She said her husband mistakenly bought Rebel ice cream instead of Van Leeuwen and wrote, “Your product was placed right next to Van Leeuwen and looked the same. I nearly did the same thing when I shopped! Later, my friend shared the same experience on the other side of the country!”
Meanwhile, Rebel, which was founded in 2017, denied the allegations, saying its founders and designers Austin and Courtney Archibald had never seen Van Leeuwen’s ice cream when they created the packaging. Austin said he first saw the product in July 2018 during a meeting with a buyer from Wegmans. The company argued that its designs were created using Adobe Illustrator between December 2017 and early 2018 and that no versions were saved other than the final output.
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Rebel products are now sold at retailers including Publix, Kroger, Walmart, H-E-B, Fred Meyer, Safeway and 7-Eleven.
Van Leeuwen designer Pentagram testified that the firm had documents supporting its position, including briefs, presentations, design files and concepts that were ultimately not selected.
Chapter 11 bankruptcy protection generally allows a company to continue operating while restructuring its finances and negotiating with creditors. It also triggers an automatic stay on most litigation against the company while the bankruptcy case proceeds.
Austin Archibald founded Rebel Creamery after noticing that the number of people following a keto diet was growing, while many of them still wanted to enjoy ice cream.