Atchley keeps receivership in place pending motions

Receiver retains authority while reconsideration, clarification motions reviewed

3:13 p.m. Feb. 10, 2026

DUANE CROSS
MCO Publisher•Editor

After a U.S. Eastern District court hearing in Knoxville on Monday, Feb. 9, U.S. District Judge Charles E. Atchley Jr. on Tuesday decided – for now – to keep judicial control over the struggling Uncle Nearest business.

The federal receivership will remain in full effect while the court considers pending motions for reconsideration and clarification, and the court-appointed receiver will continue to exercise all powers granted under the original appointment order.

Witnesses on Monday included Katherine Jerkins, Kevin Larin (declaration), David Ozgo, Daniel Romano, Anthony Severini, Receiver Philip Young (affidavit), and Fawn Weaver.

Judge Atchley ordered the parties to file any supplemental briefs and exhibits by Feb. 26, with responses due by March 5; reply briefs are not permitted. The status quo will remain unchanged until the court issues its ruling.

Losses Narrowed, but Insolvency Persists

Receiver Phillip G. Young Jr. previously said that losses have gone down while the court is supervising the company, but warned that without oversight, the business would likely lose about $2 million each month again. He also claimed that the company is insolvent, with debts close to $164 million.

To improve the company’s finances, the receiver has described efforts to sell nonessential luxury assets, including a Cognac château and vineyards in France and an estate on Martha’s Vineyard. At the same time, Farm Credit Mid-America has agreed to provide $2.5 million in emergency funding to pay overdue bills and professional fees, but only if the receiver stays in charge.

Court Weighs Expansion to Affiliated Entities

A key issue not addressed during Monday’s hearing was whether to expand the receivership to cover seven more businesses owned by the Weavers, including Humble Baron Inc., Shelbyville Barrel House BBQ LLC, Grant Sidney Inc., Quill and Cask Owner LLC, Nashwood Inc., Shelbyville Grand LLC, and 4 Front Street LLC.

Young contends that funds were being commingled across the businesses and that there was little documentation to track these transfers.

A point of inquiry is a 2025 transaction where $20 million moved through Grant Sidney. Founder and CEO Fawn Weaver said this was her own equity being reinvested, but the receiver argued that the unclear records warrant court supervision of these related accounts.