CHATTANOOGA — The court-appointed receiver overseeing Uncle Nearest, Inc. says the Tennessee whiskey company remains a viable business despite significant financial and organizational challenges in his first quarterly report filed October 1 in the U.S. District Court for the Eastern District of Tennessee.
In a copy of the report obtained by The Times, receiver Phillip G. Young, Jr. stated the company “has significant value and can be reorganized” and that liquidation “is not necessary or in the best interest” of stakeholders.
Young noted strong cooperation from company founder Fawn Weaver, management, employees, and the primary lender, Farm Credit Mid-America. In the first five weeks of receivership, he and his team secured control of bank accounts, created a 13-week operating budget, and reached a forbearance agreement under which Farm Credit funded $2.5 million in immediate needs. He also verified inventory, met with distributors, and implemented workforce and budget cuts totaling about 13 percent.
The receiver’s review uncovered disorganized financial records, missing data, and evidence of possible past improprieties by a former employee, though none involving current staff or Weaver. Among the assets under review are non-income-producing properties in France, Massachusetts, and Tennessee, including a Cognac chateau and vineyards. Young said those French holdings likely require $15 million – $25 million in new investment to become viable and should instead be sold; one offer is already under consideration.
Major challenges include cash-flow shortages early in the receivership, incomplete shareholder and capitalization records, and erased financial data from before 2024. Young reported that hundreds of shareholders and creditors have reached out for updates, consuming considerable time but also building trust. He said financial statements will be rebuilt from source data before any sale or refinancing proposals are accepted.
Despite the turmoil, Young expressed optimism that the distillery can emerge from receivership by early 2026, either through debt refinancing or a sale as a going concern. “The outlook is positive,” he concluded, emphasizing transparency, cooperation, and preservation of value as guiding principles for the months ahead. •
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