Uncle Nearest trial date set for October 2027

Humble Baron faces bankruptcy hearing after failing to return $66K in unauthorized transfers by court-ordered deadline

10:15 p.m. Aug. 17, 2026

DUANE CROSS
MCO Publisher•Editor

The court-appointed receiver overseeing Uncle Nearest Real Estate Holdings is asking a federal bankruptcy judge to convert Humble Baron Inc.’s Chapter 11 case to Chapter 7 after the company failed to return more than $66,000 in unauthorized transfers by a court-ordered deadline.

Phillip G. Young Jr., receiver for Uncle Nearest Real Estate Holdings, filed a statement Monday in U.S. Bankruptcy Court for the Eastern District of Tennessee supporting conversion of the case. A hearing is scheduled for 9:30 a.m. CT Wednesday, Aug. 19, in Chattanooga.

In practical terms, conversion would end Humble Baron’s Chapter 11 reorganization and move the case into Chapter 7 liquidation. Under Chapter 7, an impartial trustee administers the bankruptcy estate, liquidates available assets for creditors, and may pursue recovery of property belonging to the estate.

$66,350 was supposed to be returned

The hearing stems from an agreed order entered July 31 between Humble Baron and the U.S. trustee.

Under that order, Humble Baron – either directly or through Keith Weaver – was required to return or reimburse $66,350.66 in what the court described as unauthorized, improper transfers made without court approval. The money was supposed to be deposited into the company’s debtor-in-possession account by Aug. 1, with bank records proving the deposit was provided by Aug. 3.

That did not happen.

The U.S. trustee filed a notice of default on Aug. 4, stating that the money had not been deposited by the Aug. 1 deadline and that proof of repayment had not been provided by Aug. 3.

The court then scheduled Wednesday’s hearing to consider whether to dismiss the bankruptcy, convert it, or remove Humble Baron as debtor in possession and appoint a trustee.

Humble Baron filed for Chapter 11 bankruptcy June 5. The business leases space at 3125 U.S. 231 North in Shelbyville from Uncle Nearest Real Estate Holdings.

Receiver points to nearly $292,000 in earlier transfers

Young argues conversion is now the only practical option.

In Monday’s filing, the receiver says Humble Baron has failed to pay rent owed before the bankruptcy filing or to fund the agreed-upon escrow amount tied to its lease. He also argues the company has no viable way to cure what he describes as a 12-month lease default.

The filing also points to $291,954.60 in transfers made during the 90 days before Humble Baron filed bankruptcy.

According to the company’s Statement of Financial Affairs, the receiver says most of that money went to insiders, including Nashwood and Shelbyville Barrel House, which the filing describes as sister companies of Humble Baron.

Young argues a trustee should investigate those transfers, along with additional transfers to insiders during the year before the bankruptcy filing.

Receiver also challenges $15,000 attorney payment

The latest filing follows a separate objection Young filed Friday to Humble Baron’s request to pay $15,000 to its bankruptcy attorneys.

In that filing, the receiver alleged Humble Baron spent nearly $60,000 after entering bankruptcy while leaving its pre-bankruptcy rent and escrow obligations unpaid.

Among the expenditures cited were a trip to France, $2,924 in other personal expenses at steakhouses and Starbucks, and what the filing describes as a lodge at Lake Oconee, Ga. The filing also lists a $62.50 charge at Boho Nail Bar and $6,000 in unexplained cash withdrawals.

The receiver also alleges Humble Baron paid $40,000 to Johnson and Johnson PLLC, attorneys he says represent Keith and Fawn Weaver in the receivership case rather than Humble Baron.

Other payments listed in the filing include an unexplained $4,000 transfer to Keith Weaver, a $5,300 payment to Shelbyville Barrel House BBQ LLC and an unexplained $1,500 payment to Michael Edwards Jr.

Young said he does not oppose Humble Baron’s bankruptcy attorneys being paid eventually. He argues, however, that payment should be delayed until the disputed funds are returned to the estate and other administrative expenses are paid.

Receiver says lease is vital to Humble Baron

The dispute also reaches directly into Humble Baron’s relationship with Uncle Nearest.

The receiver argues the restaurant’s identity and marketing are closely tied to its location on property associated with Nearest Green Distillery.

The filing describes the Humble Baron Old Fashioned as the business’s most popular drink and notes that it is made with Nearest Whiskey. Young argues eviction would sever much of the restaurant’s remaining ties to that legacy.

At the same time, Young alleges that Humble Baron has not paid its pre-bankruptcy rent or the agreed-upon escrow amount under the lease.

Young is asking the court to convert the case to Chapter 7 and appoint a trustee to wind down Humble Baron’s affairs and investigate transfers that could potentially be recovered for the bankruptcy estate.