By Milton Kirby | Shelbyville, TN | September 21, 2025

Uncle Nearest Premium Whiskey, a thriving brand valued at $1.1 billion in 2024 by Forbes and other sources and recognized as the fastest-growing Black-owned spirits brand in the nation, is now embroiled in a federal court battle. A receivership order, linked to a staggering $108 million debt, has handed over the reins of the company’s finances and operations to external parties. This pivotal moment could potentially reshape one of the most celebrated American whiskey stories in recent history.

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How the Case Started

On July 28, 2025, Farm Credit Mid-America filed suit, alleging that Uncle Nearest, Nearest Green Distillery, and founders Fawn and Keith Weaver defaulted on over $100 million in loans. The lender accused the company of:

• Overstating the value of whiskey barrels used as collateral by $21–24 million.
• Failing to keep a $1.5 million cash balance required under loan agreements.
• Falling behind on payments and breaching covenants on net worth and net income.
• Selling or discounting future revenues without proper notice.

Farm Credit also claimed “insufficient internal financial controls” and said defaults date back to 2023. Still, the lender extended additional credit at the time, “in reliance upon Uncle Nearest’s representations as to its success and strategic growth.”

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Uncle Nearest Pushes Back

The Weavers argue the picture is more complicated. In sworn filings, Fawn Weaver declared that former CFO Mike Senzaki “was the sole point of contact responsible for inventory reporting and for signing off on all funding requests tied to those barrels.” She maintains that discrepancies surfaced in early 2024, months before Farm Credit sued.

On the Martha’s Vineyard home purchased through UN House MV LLC, Uncle Nearest submitted internal emails showing that Farm Credit executives “were not only aware of the property but also attended an inaugural Gospel Brunch event at the home.” The filing added, “These were not covert maneuvers.”

Weaver has also spoken directly to supporters. In a widely shared Instagram video, she declared:

“Don’t believe the fake news. Some reports claim I no longer own Uncle Nearest and that I’m not running it. Let me be clear. I built this company. I run this company. And my leadership team, who have all been with me for 6 to 8 years, are right here building alongside me. Our team remains unshaken and unmoved.”

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Growth & Market Momentum

On August 16, 2025—two days after the court appointed a receiver—Fawn Weaver took to Instagram to rally customers and partners. She emphasized that, despite legal pressures, Uncle Nearest continues to expand in key markets “in a year where spirits are down.” This continued growth and market momentum is a testament to the company’s resilience and a reason for optimism about Uncle Nearest’s future

She pointed to sales surges across the country, noting:

• Illinois: +216% this month, +21% year-to-date.
• Florida: +92% this month, +24% year-to-date.
• Georgia: +31% this month, +53% year-to-date..
• Maryland: +30% this month, +49% year-to-date.
• Alaska: +423% this month, +44% year-to-date.
• South Carolina: +48% this month, +53% year-to-date.
• Texas: +44% this month, +34% year-to-date.
• New Mexico: +32% this month, +22% year-to-date.

Her message was pointed:

“Don’t forget, keep clearing them out, leave no doubt, send a loud message that you are behind this brand and the team that built it.”

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The Court’s Decision

On August 14, 2025, U.S. District Judge Charles E. Atchley Jr. appointed Phillip G. Young Jr. as receiver, finding that receivership was “necessary under the circumstances” due to questions of solvency, inadequate collateral, and ongoing defaults.

Young, a bankruptcy and business attorney, has hired turnaround specialists Newpoint Advisors Corp. to assess the company’s financial health, with Thoroughbred Spirits Group managing operations. Belcher, Sykes & Harrington has been engaged as counsel for alcohol and beverages, while Young’s firm, Thompson Burton, serves as receivership counsel

The order effectively shifts day-to-day financial and operational control to the receiver, while leaving branding and public-facing work partially in the hands of Uncle Nearest leadership.

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Money In and Money Out

Records show that Uncle Nearest made large payments before the lawsuit: $9 million in 2024 and $7.5 million earlier this year. Yet Farm Credit says those payments did not cure defaults or fix repeated covenant breaches.

The dispute over barrel values is especially critical. Farm Credit claims the inventory overstatement inflated its lending exposure. Uncle Nearest insists the problems trace back to one former executive.

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Assets in Question

The receivership may extend beyond the distillery and barrels. The receiver has asked the court to clarify whether other Weaver-connected entities should be pulled in, 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

Additional law firms are also reviewing potential assets in Massachusetts and France.

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Costs of Receivership

The Financial Impact of Receivership oversight comes at a cost. Young has already hired multiple consulting and legal teams to stabilize operations. These include financial consultants, operational managers, and attorneys specializing in alcohol law.

While the exact fees have not been disclosed in public filings, industry observers note that receivership and professional services can be expensive. For a company already under heavy debt, these additional expenses could create new pressure on cash flow and raise the risk of bankruptcy if revenue cannot keep pace.

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Local Impact

The distillery in Shelbyville has become a destination in its own right. Reports show that the site attracted 5,000 to 8,000 visitors every weekend in 2023. The company claims it ranked as the seventh-most visited distillery in the world among its peers. This local economic impact is a testament to Uncle Nearest’s importance to its community and the connections it fosters.

Tourism tied to whiskey is a growing sector in Tennessee, part of the Tennessee Whiskey Trail that draws travelers from across the U.S. and abroad. For Shelbyville, the ripple effects include job opportunities, tourism, and spending at local hotels and restaurants.

How the receivership affects visitor traffic and local suppliers remains unclear, but the stakes are high.

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A “People’s CEO” Message

Weaver has leaned into her identity as what she calls the “People’s CEO.” She told followers:

“Keep clearing the shelves. Every bottle you move tells our distributors and partners the same thing. We’ve built one of the strongest and most resilient brands in American history.”

“From the start, I’ve shared the ups and downs of building Uncle Nearest, that transparency is a part of my calling. That is what built one of the strongest brand communities in American history.

That’s why they call me the People’s CEO — because I don’t just show the gloss, I show the grind, the grit, and the gunk.”

She also reminded entrepreneurs of the long road:

“Entrepreneurialism will give you a hundred reasons a day to quit, but strong leadership doesn’t panic. It keeps a steady hand and moves forward.”

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What to Watch

• The receiver’s first quarterly report, due October 1, 2025, which should reveal cash flow, solvency, and collateral status.
• Whether additional Weaver-linked LLCs will be pulled into the receivership.
• Possible legal action against the former CFO, or counterclaims from Uncle Nearest.
• The impact of consultant and legal fees on the company’s ability to restructure debt.
• Continued sales growth in markets like Illinois, Florida, Georgia, Maryland, and Alaska.

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A Story Still Unfolding

“What the enemy meant for evil? God meant for good,” Weaver told her audience. That note of faith and defiance now hangs over the courtroom battles and boardroom decisions.

Uncle Nearest’s future is tied to the courts, consultants, and creditors as much as to its whiskey barrels and brand story. The next reports, hearings, and filings will determine whether this is a path toward restructuring or toward deeper financial trouble.

For Shelbyville, for whiskey fans, and for those invested in the legacy of Nearest Green, this is a story to keep watching.

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