Uncle Nearest receiver eyes sale as financial troubles mount

Three prospective buyers remain in negotiations, but receiver Phillip Young offers little hope of a return for shareholders

7:32 a.m. Oct. 13, 2026

DUANE CROSS
MCO Publisher•Editor

Three potential buyers are still at the table for Uncle Nearest, but the clock is working against the troubled whiskey company.

Court-appointed receiver Phillip G. Young Jr. says he is close to reaching an agreement to sell substantially all of the company's assets. No deal has been signed, however, and Young warns that every month spent under receivership threatens to further diminish the brand's value.

His fifth quarterly report, filed Friday, Oct. 9, in U.S. District Court in Winchester, paints a difficult financial picture. The company remains insolvent, professional fees have topped $6.1 million since the receivership began, and federal income tax returns have not been filed since 2018.

There is also little hope of a return for investors. Young reported that all indications are that shareholders will receive nothing once the company's assets are liquidated, although the final accounting remains unfinished.

The receiver's immediate goal is a sale. Once an agreement is signed, he intends to place most of the companies under receivership into Chapter 11 bankruptcy and sell their assets through that process. "The Receiver continues to believe that the Company's business and brand still have a future," Young wrote. That future, he believes, depends on finding a buyer with enough capital to turn the business around.

The 17-page report covers June 29 through Sept. 27 and comes as separate court filings renew a dispute over whether Uncle Nearest co-founder Keith Weaver should remain an individual defendant in Farm Credit Mid-America's lawsuit.

Three potential buyers, but no agreement

Young's efforts to sell the whiskey operation have continued since a proposed transaction failed earlier this year. On May 29, the receiver signed a nonbinding letter of intent with a potential buyer. That party failed to complete a purchase before its period of exclusive negotiations expired.

Young then opened discussions with three other interested buyers. All three remain involved, and the receiver and his consultants have spent considerable time negotiating potential transactions. "While no asset purchase agreement has been executed, the Receiver feels that he is close to executing an asset purchase agreement," the report states.

No buyers are identified, and Young provides no proposed purchase price or timetable for closing.

Once a buyer signs an agreement, Young plans to file Chapter 11 bankruptcy petitions for most of the companies under receivership. The assets would then be sold under Section 363 of the U.S. Bankruptcy Code, which provides for court-supervised sales.

The receiver has already retained bankruptcy counsel and begun preparing the filings.

That plan comes more than a year after Farm Credit sought court intervention over defaults on loans totaling more than $100 million. U.S. District Judge Charles Atchley appointed Young receiver on Aug. 22, 2025, placing him in control of Uncle Nearest and its related businesses.

Young has since cut expenses, managed the company's finances, and attempted to preserve operations while looking for a buyer. The longer that takes, he warns, the more difficult the job becomes.

One key operational employee departed during the latest quarter. The receiver shifted duties among remaining workers and increased the involvement of outside consultants to cover the loss. He worries additional departures could make it harder to keep the company operating.

Young also points to declining demand for spirits, changes in distributor relationships, tariffs, and negative publicity surrounding Uncle Nearest and its court proceedings.

He expects sales to continue falling as long as the receivership remains in place.

$4.77 million collected, nearly $5 million spent

The latest financial report shows how little room the company has to absorb its ongoing expenses. Between June 29 and Sept. 27, the receivership collected $4.77 million and spent nearly $4.99 million, leaving a net cash outflow of $218,091.

The quarterly figures break down this way:

• Operating collections – $4,323,685
• Farm Credit funding – $450,000
• Total collections – $4,773,685
• Operating expenses – $3,159,040
• Professional fees – $1,832,736
• Total expenditures – $4,991,776
• Net cash flow – (-$218,091)

Operating collections exceeded operating expenses by $1.16 million. But professional fees more than consumed that surplus.

The July sale of the Martha's Vineyard House generated approximately $818,000 in net proceeds. That one-time payment accounted for much of the quarter's stronger-than-expected operating collections.

Farm Credit provided another $450,000 to support operations during the quarter. That was considerably less than budgeted, largely because the receiver had anticipated approximately $2 million in bankruptcy-related financing that was not needed when the Chapter 11 filing did not occur.

Since the receivership began in August 2025, the company has collected approximately $23.45 million, including $4.95 million provided by Farm Credit. Total expenditures have reached $23.16 million.

That leaves a cumulative net cash flow of approximately $291,000 since the receivership began. Young cautions that cash resources remain limited and the company continues to depend on lender funding and spending cuts.

"Cash flow continues to be a major challenge to this receivership," he wrote. The receiver maintains a rolling 13-week cash budget and provides Farm Credit with financial updates every two weeks.

His team has also stepped up efforts to collect outstanding accounts. Accounts receivable fell from approximately $2.61 million at the end of June to $2.36 million at the end of September, a 9.3% reduction.

Professional fees remain a substantial expense. During the latest quarter, they totaled $1.83 million, including $832,383 paid to Thompson Burton PLLC, $453,149 to Newpoint Advisors Corporation, $104,784 to Thoroughbred Spirits Group, and $442,420 to other professionals.

Since Young took control, professional fees have reached $6,145,938. Thompson Burton accounts for approximately $2.89 million of that amount, followed by Newpoint Advisors at $1.94 million and Thoroughbred Spirits Group at $594,066.

Those expenses are approximately $2.17 million below the original budget. Young attributes part of the savings to bankruptcy expenses that have not yet been incurred.

The receiver has also changed payroll providers, moving from Genesis Global to Vensure HR. The first payroll through the new provider was scheduled for Oct. 9. Young estimates the change will save nearly $342,000 annually.

The savings help, but they do not change the company's financial condition. Young's report concludes that Uncle Nearest remains insolvent, and his review of shareholder records suggests investors are unlikely to recover their money.

No federal income tax returns since 2018

Uncle Nearest has not filed federal income tax returns since 2018, according to Young's report.

Young said he is working with tax authorities and outside advisers to address the missing filings and determine what the company may owe. The review also uncovered potential liabilities in Tennessee and Delaware involving incomplete filings and unpaid business, excise, and sales taxes. Those obligations have been incorporated into the receiver's financial planning, but the report does not put a total dollar figure on the exposure.

Tax compliance at Grant Sidney Inc., the largest shareholder of Uncle Nearest and a company wholly owned by Fawn Weaver, is also under review. The court placed Grant Sidney into receivership May 26. A subsequent investigative report concluded that significant assets benefiting creditors were unlikely to be found and that a permanent receivership was not necessary.

The tax problems are part of a larger accounting mess that Young's team has been working to untangle.

He reported that Uncle Nearest's books were unreliable when he took control. Financial balances had not been properly reconciled, some accounting entries lacked documentation, and certain revenue had been recorded improperly.

Reconstructing those records has been difficult enough. The loss of older financial records has made it worse. According to Young, multiple employees reported that a former employee erased substantial financial records dating from before 2024 immediately after being fired. Other employees alleged that those records still exist on a computer platform owned and controlled by Grant Sidney.

The report does not identify the former employee or establish whether the records can be recovered. Young's team continues trying to locate them.

Young also reported irregularities in transactions involving companies owned by the Weavers. In some cases, assets and liabilities were mixed between companies under receivership and outside businesses, complicating efforts to determine which entities owe money and which creditors have claims against particular assets.

A third-party accounting firm has been helping reconstruct the company's books. Financial statements have been completed for 2025 and through July 2026, with August records still being prepared.

The receiver plans to continue reviewing insider compensation, travel and marketing expenses, and transactions between related companies, including possible preferential or fraudulent transfers that could be recovered for creditors.

Federal investigators continue seeking records

Young reported that the U.S. Attorney's Office for the Southern District of New York and the Securities and Exchange Commission continue requesting documents from the receivership.

Both agencies issued subpoenas during the previous quarter and have since updated their requests. Young said his team is complying and will continue cooperating with government investigators.

The report does not identify criminal charges or SEC enforcement findings arising from those inquiries. Nor does it establish which individuals, if any, may ultimately face legal action.

The receiver is conducting his own forensic review of the company's finances and transactions. He expects any resulting lawsuits to be pursued through bankruptcy proceedings if the planned Chapter 11 cases move forward.

Young also warned that the government investigations could further damage Uncle Nearest's reputation, depending on their findings.

Receiver seeks to recover distillery restaurant spaces

Two restaurant spaces at the Nearest Green Distillery are also caught up in the company's financial problems.

Young is working to regain possession of areas formerly occupied by Humble Baron and Shelbyville Barrel House. Both restaurant businesses are owned, at least in part and directly or indirectly, by Keith Weaver. Both have unpaid rent extending more than a year, according to the receiver.

Humble Baron filed for Chapter 11 bankruptcy protection in June. The case has since been converted to Chapter 7 liquidation, with an independent trustee overseeing the process.

Young said he became involved because Humble Baron leased space from an entity under receivership, received substantial transfers from Uncle Nearest-related businesses before the receivership, and claimed those businesses owed it approximately $500,000.

He expects to recover the Humble Baron premises through an agreement with the bankruptcy trustee.

Shelbyville Barrel House may require a different approach. Young anticipates pursuing formal eviction proceedings to recover that space.

The report does not provide the precise rental balances or indicate that an eviction has already been ordered.

French vineyards closer to sale; chateau remains on market

While the whiskey operation attracts interest from potential buyers, Uncle Nearest's properties in Cognac, France, face a different market. Young has accepted an offer for the company's French vineyards, subject to court approval.

The sale must first pass through SAFER, the French agricultural agency that oversees certain farmland transactions. That process requires an appraisal and public notice to ensure the proposed price is fair and to allow consideration of competing offers.

Once those steps are completed, Young intends to seek approval from the federal court in Tennessee.

Finding a buyer for the French chateau has been considerably harder. Young cites weakness in the cognac market, including a French industry report describing a steep production decline attributed partly to American tariffs.

With more chateaus coming onto the market, Young has begun discussing a possible auction with a French official authorized to conduct real estate sales. The auction could be held in person or online, but would require court approval.

Young intends to sell the French assets through the existing receivership rather than involve the properties in the planned U.S. bankruptcy proceedings.

Farm Credit and Keith Weaver dispute his place in lawsuit

As Young moves toward a sale, Farm Credit Mid-America and Keith Weaver are asking the federal court to settle another question: Should Weaver remain an individual defendant in the lender's lawsuit?

In opposing filings submitted Oct. 7, the two sides focused on properties Weaver pledged as collateral for Uncle Nearest's corporate loans.

Keith and Fawn Weaver jointly own Dan Call Farm in Moore County, while Keith Weaver individually owns the Eady Road property adjacent to the Nearest Green Distillery. Both properties were pledged as collateral for Uncle Nearest's loans through deeds of trust in favor of Farm Credit.

Farm Credit argues that Weaver signed those documents in his individual capacity and must remain a defendant for the court to enforce the lender's rights against the properties. The lender says the deeds also allowed it to seek a receiver following a default.

Weaver's attorneys do not dispute that the properties were pledged. They argue that pledging collateral does not make him personally responsible for the company's debt.

Farm Credit acknowledges that Weaver never signed a personal guarantee. It nevertheless maintains that his ownership interests make him a necessary party to the lawsuit.

Weaver counters that the lender has not identified a separate cause of action against him for repayment or personal misconduct.

"Fourteen (14) months of investigation without a pleaded personal claim cannot justify keeping Defendant, Keith Weaver in this case," his attorneys wrote.

Farm Credit says its investigation remains ongoing and that additional evidence may affect the individual liability of people involved in Uncle Nearest's financial dealings. Weaver argues that the possibility of future claims cannot justify keeping him in the current case.

His attorneys also object to Farm Credit's repeated references to "the Weavers," arguing that his wife's business decisions and ownership interests cannot automatically be attributed to him.

They cite an earlier ruling in which the court declined to expand the receivership to six Keith Weaver-linked entities, finding insufficient evidence to justify placing those businesses under Young's control.

Farm Credit points to earlier judicial findings concerning Uncle Nearest's financial condition, disputed transactions, and court orders restricting interference with the receivership.

Both sides also address a transaction involving Shelbyville Grand LLC, a Keith Weaver-linked entity. The court previously identified circumstances raising concerns about the transaction but stopped short of finding it improper and declined to bring Shelbyville Grand into receivership.

The question now is whether Weaver's ownership of pledged collateral is enough to keep him in the lawsuit, even without a separate claim that he personally owes the corporate debt.

The court has not ruled on his latest request for dismissal.

The dispute comes as a separate federal appeal over the continued receivership moves forward.

According to Weaver's Oct. 7 reply, the U.S. Court of Appeals for the Sixth Circuit rejected a jurisdictional challenge Oct. 2 and established a briefing schedule to consider whether the receivership should be wound up.

The appeals court distinguished that question from overturning the receiver's original appointment. It will consider whether developments since Young took control justify ending the receivership.

The appeal does not terminate the existing court order, and Young remains in control of the company.

A sale remains the priority

The company still has operations to maintain, employees to pay, financial records to reconstruct, and government inquiries to answer. Its French properties remain unsold, and significant questions about past transactions and tax obligations have yet to be resolved.

Young believes the Weavers' continued legal challenges have further damaged the brand's value, citing conversations with employees, creditors, vendors, shareholders, consultants, and potential investors. His report does not quantify that alleged damage.

For shareholders, the outlook is particularly bleak. Young's present assessment is that the sale proceeds will not be enough to provide them a recovery after the company's obligations are addressed.

But he has not abandoned hope for the whiskey business itself. He believes a buyer with new capital and better financial controls could restore the brand. That is why he is pressing to complete a transaction while there is still value to preserve.

"If a sale is not consummated soon, the Receiver is concerned about the continued deterioration of the brand's value," Young wrote.