Keto Ice Cream Maker Rebel Creamery Files for Bankruptcy After Trade Dress Ruling

Rebel Creamery, a keto-friendly ice cream brand sold at retailers including Walmart and Kroger, has filed for Chapter 11 bankruptcy protection. The filing comes about a month after a federal judge ruled that Rebel Creamery infringed on competitor Van Leeuwen Ice Cream's "trade dress," ordering Rebel to pay $23.8 million and change its packaging.

The ruling by U.S. District Judge Eric Komitee concluded a years-long lawsuit initiated by Van Leeuwen in 2021. Van Leeuwen alleged that Rebel Creamery's packaging, which features pastel colors and black script, was too similar to its own established design. Van Leeuwen argued this similarity caused consumer confusion and resulted in lost sales.

Van Leeuwen, which has been in operation for approximately 18 years and operates its own ice cream parlors, presented evidence of its trade dress's origin dating back to 2016. Rebel Creamery, founded in late 2017, claimed its founders designed the packaging independently but could not produce design evolution files, only the final version.

By filing for Chapter 11, Rebel Creamery aims to restructure its debts while continuing operations. The company lists Van Leeuwen's claim of $23.8 million as "Disputed" in its bankruptcy filing. Rebel Creamery's future now largely depends on the outcome of its appeal against the trade dress ruling.