By Tabitha Evans Moore
Editor & Publisher
The company behind Uncle Nearest whiskey would cease operations within 30 days — if not for a combination of court protection, continued outside cash infusions, and aggressive cost-cutting that has kept it barely afloat, according to a quarterly report filed Friday in federal court.
Uncle Nearest Premium Whiskey, a Bedford County distillery with deep ties to Lynchburg, is at the center of this case. Nathan “Nearest” Green is the formerly enslaved Black man credited with teaching Jack Daniel how to make whiskey. Fawn Weaver founded the company in 2017 to honor Green’s legacy.
Receiver Phillip G. Young, Jr., appointed by U.S. District Judge Atchley to oversee the Tennessee-based spirits company, filed his third quarterly report with the court, painting a picture of a company that is insolvent, operationally fragile, and racing against the clock to complete an asset sale before its options run out. Young said the company would be forced to shut down without continued cash injections from secured lender Farm Credit Mid-America, the court’s litigation stay protecting it from creditor lawsuits, and the ongoing guidance of his receivership team.
“The cessation of business would cause the loss of nearly 70 jobs and the disappearance of a brand with significant social and cultural value,” Young wrote.
A Sale Process Nearing Its Conclusion
Despite the precarious financial position, Young said there is meaningful interest from outside buyers. Working with investment advisory firm Arlington Capital Advisors, the receiver has been marketing substantially all of the company’s assets for several months and says he hopes to identify a stalking horse bidder — a baseline buyer whose offer sets the floor for a competitive auction — before the end of April. No interest emerged in refinancing the company’s debt, but Young described buyer interest in the assets as “robust.”
Additionally, the receiver said he has identified a buyer for the company’s real estate on Martha’s Vineyard and is in active discussions with parties interested in its assets in Cognac, France, with conference calls scheduled over the next two weeks with serious prospects. Young said a sale of the company as a going concern must be completed no later than the second quarter of 2026 to maximize its value.
Weaver Litigation Blamed for Brand Damage
Young was direct in assigning blame for a portion of the company’s deterioration. He said litigation initiated by founder Fawn Weaver and her husband Keith Weaver, including unauthorized bankruptcy filings dismissed by a federal bankruptcy court in March, as well as lawsuits filed in Tennessee and New York state courts, have damaged the Uncle Nearest brand and depressed sales. He said he based that conclusion on conversations with creditors, vendors, employees, shareholders, consultants, and potential investors.
The report lands just weeks after Young filed a motion asking Judge Atchley to impose a gag order on Fawn Weaver, Keith Weaver, and their related entity Grant Sidney, arguing that Weaver’s public statements — including social media posts, a press release, and a video claiming the receivership had ended — caused widespread confusion among employees, vendors, and potential buyers. That motion remains pending.
Young also noted that legal fees paid to his counsel, Thompson Burton PLLC, came in over budget this quarter specifically because of the volume of filings from the Weavers that required a response.
Missing Records and Financial Irregularities
Perhaps the most troubling disclosures in the report involve the state of the company’s financial records. Young said that a substantial amount of financial records predating 2024 were allegedly erased from the company’s computer systems. The receiver said he has recovered some of those records and is working to retrieve the rest.
Young also flagged irregularities in related-party transactions involving Grant Sidney and another Weaver-owned entity, Quill and Cask Owner LLC. He said those transactions were reviewed using external records and supporting documentation to assess their accuracy and legitimacy, and that the forensic investigation is continuing.
Separately, the company has not filed federal income tax returns since 2018. Young said he has identified a tax professional to begin work on that issue in the coming quarter. State tax obligations, including material exposure in Tennessee and New Jersey, have been resolved, with the company now in good standing in both states.
Cuts and What Comes Next
In an effort to stabilize operations, Young has reduced the company’s workforce by 34 employees — 38 percent of its total headcount — with recent cuts reaching into management ranks. The receiver said those reductions, combined with tighter spending controls, have brought the company to a cash-flow neutral position for the quarter. However, that figure does not include any payments on the company’s outstanding secured debt or pre-receivership obligations, which Young said the company has no financial ability to make.
On a brighter note, the receivership team improved accounts receivable collections by more than $800,000 — a 22 percent improvement — during the quarter.
Two significant motions remain unresolved before Judge Atchley: one filed by the receiver seeking to expand the receivership to additional Weaver-affiliated entities, and one filed by the Weavers seeking to dissolve the receivership entirely. With a fresh financial picture now before the court, a ruling on either or both could come soon. •
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