A beloved grocery store ice cream company has now filed an unexpected bankruptcy, appealing a $23.785 million judgment awarded to rival Van Leeuwen Ice Cream in a trade-dress dispute.
Rebel Creamery LLC (Rebel Ice Cream) filed for Chapter 11 protection on Aug. 14 in the U.S. Bankruptcy Court for the District of Utah, according to court records.
Rebel ice cream is sold at major grocery store chains such as Walmart, Kroger, Safeway and other grocery stores nationwide.
The company is now fighting an appeal with its rival Van Leeuwen Ice Cream.
In 2021, Van Leeuwen sued Rebel alleging the company was copying the packaging of their ice cream pints.
“The evidence at that trial left no doubt that Rebel infringed and diluted Van Leeuwen’s trade dress and did so intentionally,” U.S. District Judge Eric Komitee wrote in a July 16 memorandum and order.
Komitee found that Rebel’s packaging was similar and that the evidence supported findings of consumer confusion and bad faith, per Fox Business.
The judge ordered Rebel to stop selling products bearing trade dress likely to be confused with Van Leeuwen’s and required the company to redesign its packaging.
The rivalry between the two ice cream companies became even more heated.
Van Leeuwen sought $36.4 million in Rebel’s profits, but fell through.
Instead, the court reduced the award by 33% after finding that some sales were driven by demand for keto and better-for-you ice cream rather than the packaging itself.
FILE – President Joe Biden, flanked by host Seth Meyers, patronized Van Leeuwen Ice Cream after taping an episode of “Late Night with Seth Meyers” in New York City on Feb. 26, 2024. Getty Images
Rebel Ice Cream Files Chapter 11 Bankruptcy
Rebel Ice Cream lawsuit and Chapter 11 Bankruptcy.
Forward to today, Rebel ice cream has filed for chapter 11 bankruptcy reporting approximately $13.78 million in assets and $23.85 million in liabilities appealing the $23.785 million judgment awarded to rival Van Leeuwen Ice Cream in the trade-dress dispute.
The latest court filings do not say whether the Van Leeuwan judgement was the primary cause of Rebel ice cream’s chapter 11 bankruptcy decision.
What’s tough about Rebel’s situation is that the Van Leeuwen judgment accounts for nearly all the unsecured liabilities that Rebel listed at fixed amounts in its bankruptcy schedules.
What stood out to the court in particular was the monochromatic cardboard pints with matching lids, a primarily pastel color palette, black script lettering and an overall minimalist design.
The chapter 11 bankruptcy of Rebel ice cream is a developing story.
Frank Nez is an American entrepreneur, journalist, writer, and investor. Frank's work has been cited by SEC and Congressional reports. Franknez.com is a personal finance and market news publication, dedicated to publishing content on money, investing, entrepreneurship, and retail investor news.
