Uncle Nearest running on borrowed money, time

Formal sale notice could be filed within 30 to 60 days as investigations, litigation, and cash pressure continue

7:15 p.m. July 10, 2026

DUANE CROSS
MCO Publisher•Editor

Uncle Nearest may be nearing a sale, but the company is not there yet.

The court-appointed receiver running the whiskey business says he could bring a deal before a federal judge within the next 30 to 60 days. Behind that timeline is an insolvent company still living on lender money, sorting through years of unreliable records, and responding to subpoenas from federal prosecutors and the Securities and Exchange Commission.

Receiver Phillip G. Young Jr. said in his fourth quarterly report, filed Friday, July 10, that he has signed a letter of intent with an unidentified buyer for substantially all assets tied to Uncle Nearest’s operations.

The two sides are working through a formal purchase agreement. Young is also deciding whether to complete the sale through the federal court overseeing the receivership or through a prearranged Chapter 11 bankruptcy under Bankruptcy Court supervision.

“The Receiver hopes to file a notice of sale, in this Court or in the Bankruptcy Court, within thirty to sixty days,” the report states.

No buyer, purchase price, or complete list of assets was disclosed.

Young described the deal as large and complicated, with several more weeks of work ahead. Still, he told the court that a successful transition of the brand is “very close.”

Any buyer would be stepping into a company that has needed $4.5 million from Farm Credit Mid-America to continue operating since the receivership began in August 2025.

Young said new ownership could give the brand the capital and financial discipline needed for a turnaround.

Federal scrutiny widens

Young disclosed that the receivership received document demands from the U.S. Attorney’s Office for the Southern District of New York and the SEC.

The filing does not say what investigators requested, what they are examining, or whether the company or any person has been identified as a target.

A subpoena requires the production of records or testimony. It is not, by itself, proof that a crime or securities violation occurred.

Young said his team is cooperating and working to respond on time. He warned that the inquiries are consuming time and resources and could hurt the brand later, depending on what investigators find.

The federal subpoenas are not the only investigation underway.

Young has continued his own forensic review of the company’s finances and transactions. Based on the work so far, he told the court the receivership estate “likely has viable causes of action” against former Chief Financial Officer Michael Senzaki, founders Fawn and Keith Weaver, and entities controlled by former officers or directors.

No such claims had been filed when the quarterly report was submitted.

Young said he intends to complete the investigation before deciding whether to sue. His statements are preliminary conclusions made in a court filing, not findings by a judge.

The report gives Young’s account. It does not include responses from the Weavers, Senzaki, or Farm Credit to the new allegations and disclosures.

Still running on borrowed money

The financial picture came in better than budget in some areas, but the company still cannot stand on its own.

From March 30 through June 28, Uncle Nearest and the related receivership businesses collected about $3.49 million in operating revenue – nearly $297,500 below budget.

Farm Credit supplied another $700,000 through an amended receivership line of credit, bringing total quarterly collections to approximately $4.19 million.

The estate spent roughly $4.52 million during the same period. That included $3.23 million in operating expenses and nearly $1.29 million in legal, consulting, and other receivership costs.

The result was negative quarterly cash flow of $324,441.

On the operating side alone, collections exceeded operating disbursements by $264,938. That does not mean the company turned a profit. It means operating cash coming in was greater than operating cash going out before professional costs and lender financing were counted.

Since Young’s appointment, the receivership has collected approximately $14.18 million through operations – almost $1.88 million less than budgeted.

Farm Credit’s $4.5 million in advances raised total collections to about $18.68 million. Total disbursements during the same period reached approximately $18.17 million.

“The Company remains insolvent,” Young wrote.

He said Uncle Nearest has stayed open because Farm Credit continued supplying cash, the receivership cut operating expenses, and professional fees came in below their original budgets.

Those professional costs have still been substantial.

The receivership has paid approximately $4.31 million to lawyers, advisers, spirits consultants, accountants, and other professionals since August. That includes about $2.06 million to Thompson Burton PLLC, the receiver’s law firm, and approximately $1.48 million to Newpoint Advisors Corporation.

Another $282,279 was classified as “other” professional fees, about $142,700 more than budgeted. Young said much of that expense came from investigative work that was not included in the original budget.

Turning property into cash

Young is also trying to turn nonessential property into cash.

The court had approved a $2.595 million sale of the receivership’s Martha’s Vineyard property, but the original buyers walked away July 2.

Young blamed the collapse on delays and continued challenges from Fawn and Keith Weaver, including litigation that continued after the court approved the sale. That is the receiver’s explanation; the report does not include a statement from the buyers.

A replacement appeared four days later.

On July 6, Young signed a contract with what he described as an unrelated third-party buyer. The new deal is an all-cash sale at the same price of $2.595 million.

Young said he hopes to close quickly.

The receivership has also received a cash offer for vineyards it owns in Cognac, France. The amount was not disclosed.

Young said advisers believe the offer is at least fair market value, particularly when weighed against the cost of maintaining the vineyards and current conditions in the Cognac real estate market.

Independent appraisals are underway, and notice of the proposed sale is expected to be published in a newspaper in Cognac. Young said he plans to seek court approval after those steps are complete.

No offer has been received for the estate’s chateau in France.

Young is also considering how to sell assets connected to Square One Vodka.

Untangling years of financial problems

As sale negotiations move forward, Young’s team is still trying to untangle what came before.

He told the court that Uncle Nearest’s accounting records were “materially unreliable” when the receivership began.

The problems included balances that had not been reconciled, unusual entries with little or no supporting documentation, and revenue-recognition practices that Young said distorted the company’s financial performance.

Then there were the missing records.

Young said a substantial amount of financial information dating to before 2024 had been erased from the company’s computer system. According to the report, multiple employees told the receiver that a former employee deleted the files immediately after being terminated.

The former employee is not named, and the allegation has not been decided by a court.

Young said his team is trying to recover the missing data.

The investigation has also reached transactions involving companies owned by the Weavers. Young said irregularities were found, though the report does not describe them in detail or place a dollar amount on them.

He also said several receivership companies had mixed assets and liabilities with entities outside the estate. That has made it harder to determine which business owes which debt, what property belongs to each company, and which creditor has the first claim against an asset.

A third-party accounting firm has been hired to rebuild the books. Financial statements have been completed for 2025 and through April 2026, with more recent months still being prepared.

Tax compliance has brought another set of problems.

Young said the company had not filed federal income tax returns since 2018. Outside advisers are now working with tax authorities to determine what is owed and bring the business into compliance.

The review also found incomplete reporting and unpaid business, excise, and sales taxes in Tennessee and Delaware. Young said those state issues were corrected during the quarter and the affected companies are now in good standing.

The tax position of Grant Sidney Inc. remains under review after the court added it to the receivership estate May 26.

Young has requested records from banks and other companies as he examines Grant Sidney’s finances. Some have arrived, but not all. He warned that missing records could force him to seek more time beyond a July 25 reporting deadline.

The amount of any federal tax liability remains unknown. Until those returns are prepared, another potentially significant claim against the estate remains unresolved.

A smaller company under tighter control

Uncle Nearest is a much smaller company than it was when the receivership began.

Young has cut 40 jobs, reducing the workforce by 44%. Recent reductions have reached both management and sales.

The report does not provide the company’s current headcount or identify the positions eliminated.

Administrative and sales budgets have also been trimmed. Every significant payment now requires the receiver’s approval, and the cash plan is updated weekly to track what the company can afford.

The focus has extended to money already owed to Uncle Nearest.

Gross accounts receivable fell from approximately $3.68 million at the end of 2025 to $2.62 million by the end of June. That is a reduction of about $1.06 million, or 29%, as the receivership pushed harder to collect outstanding bills.

Young has taken control of the company’s primary domestic bank accounts, but some loose ends remain. The receiver does not yet have exclusive control of small balances held in France or all accounts connected to Grant Sidney.

The sales operation has faced its own disruption.

Republic National Distributing Co., known as RNDC, had been Uncle Nearest’s largest distributor. Young said RNDC began a major downsizing in early 2026 and sold several markets to Reyes Beverage Group, including territories where RNDC had been the brand’s exclusive distributor.

The shake-up came at a bad time.

Uncle Nearest was already dealing with a weak global spirits market, lower alcohol demand, tariffs affecting international sales, credit holds, and the uncertainty that accompanies a company entering receivership.

Young credited the company’s sales staff and outside consultants with getting through the distributor transition, but said the broader market continues to weigh on sales.

Founders out as legal fights continue

Young removed Fawn and Keith Weaver from the company effective June 1.

He said their access to buildings and computer systems was restricted and their personal property was returned to them or their representatives.

Young told the court the move reduced confusion among employees and vendors and made daily operations smoother.

The Weavers continue to challenge major decisions in court.

One appeal involves the Bankruptcy Court’s dismissal of a bankruptcy filing made by Fawn Weaver on the company’s behalf. Another challenges the order that expanded the receivership to include Grant Sidney and rejected efforts to end Young’s control.

Requests to pause several receivership orders while the appeals move forward have been denied, according to the report. Briefing before the Sixth Circuit Court of Appeals is expected to begin in August.

Young said the litigation has distracted employees and business partners, consumed receivership resources, and harmed the brand. Those conclusions are his assessment, not separate findings by the court.

Young is also seeking to remove Shelbyville Barrel House and Humble Baron from their spaces at Nearest Green Distillery. The filing connects both businesses to Keith Weaver and alleges they are more than a year behind on rent.

Humble Baron’s June 5 Chapter 11 filing temporarily blocked eviction proceedings. Young said the receivership is seeking permission from the Bankruptcy Court to move forward while separately addressing Shelbyville Barrel House.

The restaurant dispute is one more piece of a broader effort: cut expenses, settle who controls what, sell nonessential property, and move the operating business into new hands.