Uncle Nearest Asset Dispute Triggers Sale and Possible Bankruptcy: Inside the Legal Battles and Smear Campaign Behind It

Tensions boil in the whiskey world as Uncle Nearest, the celebrated Black-owned brand honouring Nathan 'Nearest' Green, teeters on the edge of bankruptcy following a fierce asset dispute that ignited a £70.4 million ($108 million) loan default lawsuit.

Founder Fawn Weaver blasts a calculated smear campaign by lender Farm Credit Mid-America, accusing them of twisting a Martha's Vineyard property buy into fraud claims to seize control amid the receivership ordered on 14 August 2025.

As financial restructuring accelerates with non-core asset sales, stakeholders watch anxiously: will this legal battle salvage the distillery or doom it to Chapter 11 ruin in late 2025?

Igniting the Fuse: The £70.4 Million Default and Receivership Order

Farm Credit Mid-America launched its lawsuit on 4 August 2025 against Uncle Nearest Inc., Nearest Green Distillery, and founders Fawn and Keith Weaver, alleging defaults on over £70.4 million ($108 million) in loans and lines of credit dating back to May 2024 notices. The lender claimed inflated collateral valuations, misuse of proceeds, covenant breaches, and failure to provide financials, culminating in a forbearance default by April 2025.

United States District Court Judge Travis R. McDonough granted the receivership motion on 14 August 2025 in case 4:25-cv-38 (E.D. Tenn.), appointing Phillip G. Young Jr. to manage assets and stabilise operations, citing fraudulent conduct by a former employee who misrepresented inventory. This extraordinary remedy protected the lender's interests, as loan documents explicitly consented to such oversight.

Young assumed control swiftly, freezing accounts and halting unauthorised transfers. The Root highlighted the fallout on 17 August 2025, warning of a 'devastating update' for the once-£717 million ($1.1 billion) valued brand.

Founders retained operational roles, but the court signalled readiness to revisit if facts shifted. This legal manoeuvre underscored the high stakes in the Farm Credit battle, transforming a distillery dream into a courtroom showdown.

Unmasking the Smear: Fawn Weaver's Accusations Against the Lender

Fawn Weaver fired back at the Inc. 5000 Conference on 23 October 2025, labelling the lender's focus on a 2023 Martha's Vineyard property purchase as a 'smear campaign tactic' designed to sway the judge.

'Their hope was that the judge would see it, would accept the smear, and would turn over keys of my company to them,' she declared during the 'Reclaiming Your Company in Turbulent Times' fireside chat.

An August 2025 filing by Weaver and Uncle Nearest countered that Farm Credit failed to perfect security on seven of eight real estate pieces, including the Vineyard home, and ignored context: two lender executives joined a social trip there with the ex-CFO—accused of fraud—praising the acquisition at an event.

Fire Sale and Fragile Recovery: Assets on the Block Amid Bankruptcy Shadow

Receiver Young reported on 1 October 2025 finding 'no evidence of misappropriation, theft, [or] financial impropriety' by founders or staff, deeming emergence from receivership 'very good' odds while securing £1.63 million ($2.5 million) in short-term funding.

A 13-week budget confirmed revenues cover expenses, but challenges persist: 12 layoffs, unpaid vendor bills, warehouse liens, missing pre-2024 records—allegedly erased by a former employee—and potential excise/sales tax liabilities in Tennessee and New Jersey.

To refinance or sell by Q1 2026, Young targets non-core disposals within three months: French vineyards, a Cognac château, the Weaver-owned vodka brand, and possibly the Martha's Vineyard house, abandoning the cash-strapped cognac line. Initial buyer interest flows in, but incomplete shareholder lists hinder equity raises.

Bankruptcy looms as an option, though unfiled; the core whiskey endures. As the financial restructuring unfolds, Uncle Nearest's asset dispute tests resilience against collapse.