Uncle Nearest, the Tennessee-based whiskey brand founded by Fawn Weaver, may be moving toward bankruptcy as disputes continue over which assets fall under a federal receivership, according to recent court filings reviewed by the Lexington Herald-Leader.
The developments stem from a lawsuit filed on July 28 by lender Farm Credit Mid-America, which claims Uncle Nearest, Nearest Green Distillery, and the Weavers defaulted on more than $100 million in loans, AFROTECH™ previously reported. The lender also alleges that Nearest Green Distillery overstated the value of its whiskey barrels that were used as collateral by at least $24 million.
Per the Lexington Herald-Leader, the Weavers have denied the allegations, blaming a former executive and saying they were victims of fraud. As AFROTECH™ previously reported, Fawn Weaver publicly responded to the receivership, disputing the lender’s claims and asserting that certain entities and assets are separate from Uncle Nearest and should not fall under the court-appointed receivership.
According to the Lexington Herald-Leader, U.S. District Judge Charles E. Atchley Jr. appointed Phillip G. Young Jr. as receiver, authorizing him to take control of Uncle Nearest and its assets. New court filings, per the outlet, show that Young has hired Newpoint Advisors Corp., a firm specializing in distressed businesses, as the financial consultant. Thoroughbred Spirits Group has been hired as the operational consultant, Belcher, Sykes & Harrington as the alcoholic beverage counsel, and Young’s firm, Thompson Burton, is also representing the receivership. Additional law firms have been brought in to evaluate and potentially liquidate assets in France and Massachusetts, the Lexington Herald-Leader reports.
Farm Credit’s lawsuit has raised additional questions about the scope of the receivership. The receiver has asked the court for clarification on whether several other assets tied to the Weavers should be considered, including Uncle Nearest Real Estate Holdings LLC, Shelbyville Barrel House BBQ LLC, Humble Baron Inc., Grant Sidney Inc., Uncle Nearest Spurs VI, Quill and Cask Owner, Nashwood Inc., Classic Hops Brewing Co., Shelbyville Grand LLC, Weaver Interwoven Family Foundation, and 4 Park Street LLC. According to the Lexington Herald-Leader, the Weavers are expected to argue that these assets are outside the receivership.
The original court order defines the receivership as covering “all of Uncle Nearest’s assets,” including Nearest Green Distillery property in Tennessee, the Domaine D’Anatole, S1 Organic Vodka, UN House MV, Uncle Nearest Ventures, and the Nearest Green Historical Preservation & Culture Fund. No ruling on the receiver’s motion had been filed as of Sept. 15, the Lexington Herald-Leader reports.
Uncle Nearest, launched in 2017, is named for Nathan “Nearest” Green, the formerly enslaved Black distiller who taught Jack Daniel the craft of whiskey making. As AFROTECH™ previously reported, the brand experienced rapid growth, becoming one of the fastest-growing American whiskey brands and establishing the Nearest Green Distillery in Shelbyville, TN.
The court’s next decisions will determine the future of Uncle Nearest, including Uncle Nearest will file bankruptcy or if the company can continue operating under the receivership’s terms.
