By Milton Kirby | Shelbyville, TN | October 5, 2025
Uncle Nearest can be reorganized as a going concern and does not need a fire-sale liquidation, according to the first quarterly report from court-appointed receiver Phillip G. Young Jr.
The receiver says the whiskey company has “significant value” and a realistic path to refinance debt, sell select assets, or be sold as a going concern in an orderly process.
Why This Matters
The report is the first public, court-filed snapshot since the receivership began on August 22. It outlines what was stabilized, what remains at risk, and what comes next for a high-visibility brand now under tight cash controls and lender oversight.
Path Forward: Stabilize, Cut, Sell What’s Non-Core
The receiver laid out a short timeline. He aims to sell non-income-producing assets in the next quarter and finish the overall process by the end of the first quarter of 2026 through either a debt refinancing, a new investment, or a going-concern sale.
Key asset moves include:
- Cognac Project Assets (France): A château, vineyards, and intellectual property related to a planned cognac line. The receiver estimates a $15–$25 million investment would be needed to launch the line. The estate lacks that capacity now, so he intends to sell these assets. One offer is in hand, with additional interest reported.
- Other Properties: Non-income real estate in Martha’s Vineyard, Massachusetts, and several parcels in Bedford County, Tennessee, are under review for potential sale to reduce debt.
Payroll and the Role of Genesis Global
One of Young’s first priorities was payroll. When he arrived, the company’s employee pay system faced a shortfall. Payroll has since been stabilized under Genesis Global, a Professional Employer Organization (PEO) that handles payroll, benefits, tax filings, and HR services for the company.
A PEO works as a partner — sharing employer responsibilities so that small and midsize firms can focus on operations while the PEO manages human resources and compliance. Genesis Global had already been engaged before the receivership and continued under the Receiver’s supervision, ensuring consistent payroll operations. Its support allowed Uncle Nearest to meet payroll deadlines and rebuild employee confidence after weeks of uncertainty.
Cash, Controls, and a 13-Week Budget
The receiver and his advisors built a rolling 13-week budget and reached a forbearance deal with Farm Credit Mid America, the senior lender, to fund immediate needs. The plan included about $2.5 million in one-time cash: roughly $1.0 million to clear urgent payables and $1.5 million for professional fees. Excluding those extraordinary items, the budget was balanced.
Collections and Spending in the Period
| Category | Amount (USD) | % of Total |
| Collections | ||
| Operating Receipts | $1,451,747 | 46 % |
| Farm Credit Support | $1,700,000 | 54 % |
| Total Collections | $3,151,747 | 100 % |
| Expenditures | ||
| Operating Disbursements | $2,081,796 | 84 % |
| Professional Services | $405,370 | 16 % |
| Total Expenditures | $2,487,166 | 100 % |
| Budget for Period | $3,206,546 | — |
| Variance (Under Budget) | $719,380 | — |
All bank balances were moved into receiver-controlled accounts. Weekly reconciliations and pre-approval for major disbursements were instituted to preserve liquidity.
Breakdown of Professional Fees
| Vendor / Service Category | Amount (USD) | % of Total Fees |
| Legal Counsel (Bass, Berry & Sims PLC)** | $210,000 | 52 % |
| Financial Consultants (Crowe LLP)** | $105,000 | 26 % |
| Operational Advisory and HR Support (Genesis Global)** | $55,000 | 14 % |
| Receiver Administrative and Compliance Costs | $35,370 | 8 % |
| Total Professional Fees | $405,370 | 100 % |
Figures based on allocations detailed in the Receiver’s First Quarterly Report and estimated vendor summaries.
Operations: Trims, Product Flow, and Distributors
To cut costs, the receiver reduced headcount by 12 positions (13%), with further efficiency reviews underway. The team also reset expectations with distributors and vendors. Tennessee Distilling Group partially lifted a credit hold, allowing some product to ship while talks continue toward full release. New product releases are anticipated next quarter.
Records, Cap Table, and Internal Reviews
The report flags gaps in historical records and internal controls:
- Lost Data: Many pre-2024 financial records were allegedly erased by a former employee. Recovery efforts are underway.
- Financials: Some statements are incomplete; the team is recreating reliable reports from source data.
- Capitalization Table: The shareholder list is “incomplete and inaccurate,” with unrecorded secondary sales noted. Shares linked to Fawn Weaver were reportedly transferred by a former employee, possibly without authority. The receiver is contacting shareholders to reconcile the cap table.
- Misconduct Checks: No evidence of misappropriation by the founder, current management, or employees. Allegations against a former employee remain under investigation.
Taxes and Compliance
Payroll has stabilized under Genesis Global after the initial shortfall. The receiver is assessing income, excise, sales, and property-tax exposures, with Tennessee and New Jersey flagged for possible issues. Future motions may seek court approval to prioritize tax and warehouseman’s-lien payments where needed.
International Steps
French counsel is translating and domesticating the U.S. receivership order to assert control over a French bank account and clear the path to sell the Cognac-region assets.
Timeline
The receiver aims to close the process by late Q1 2026 through refinancing, new equity, or a going-concern sale.
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