Weaver: Chapter 11 bankruptcy filed

1:22 p.m. March 17, 2026

DUANE CROSS
MCO Publisher•Editor

Uncle Nearest founder and CEO Fawn Weaver said Tuesday that the company’s receivership had ended and that the whiskey brand had entered Chapter 11 bankruptcy as it escalates its legal fight with lender Farm Credit Mid-America.

In a video statement posted Tuesday, Weaver announced two major developments: a new lawsuit filed in New York by Weaver, her husband Keith Weaver, and Grant Sidney — Uncle Nearest’s largest shareholder, wholly owned by Fawn Weaver — and a Chapter 11 filing she said was intended to protect the company’s employees, creditors, and shareholders.

Tuesday’s announcement marks a new phase in the dispute between Uncle Nearest and Farm Credit, which has centered on the lender’s allegations about the company’s finances and operations. Farm Credit’s claims and Uncle Nearest’s counterclaims are now expected to be tested through bankruptcy proceedings and related litigation.

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New Lawsuit, Bankruptcy Filing

Weaver said the New York lawsuit alleges that Farm Credit knowingly circulated false claims about Uncle Nearest, as well as about her and Keith Weaver personally. Those claims, she said, included allegations of missing inventory, financial misconduct, negative cash flow, and insolvency, despite records she said contradicted them.

She also said she approved the Chapter 11 filing on Tuesday morning to reorganize the company’s debt and move the dispute into a court-supervised process. “Chapter 11 requires complete financial transparency,” Weaver said. “In that courtroom, no one gets to hide behind filings without evidence or accusations without proof.”

Financial Claims Move to Center of Case

Weaver said court filings in the bankruptcy case will show $13.2 million in unsecured obligations. She said the Farm Credit loan at the center of the dispute carries a principal balance of $102.6 million, though the company disputes that amount and plans to address it through claims and counterclaims.

Weaver also said those liabilities stand against an estimated enterprise value of about $529 million.

Those figures, along with the competing claims from both sides, are expected to be scrutinized in bankruptcy court and related litigation.

Weaver acknowledged that recent headlines and the bank’s allegations have raised concern. “Frankly, if I were just reading the headlines or only the bank’s allegations, I’d be concerned too,” she said.

Still, she argued that the Chapter 11 process will force a fact-based examination of the company’s finances. “The picture that has been painted about Uncle Nearest will now have to be proven through numbers that add up, not words,” Weaver said.

Weaver Says Company Will Keep Operating

Weaver also accepted responsibility for not acting sooner. “I should have seen the sign sooner. I should have acted sooner,” she said. “I wish I had, but I can’t go back and change the past.”

Even as she addressed the legal and financial turmoil, Weaver sought to reassure distributors, retailers, employees, and supporters that the company remains operational. She said Uncle Nearest continues distribution in all 50 states, the Caribbean, and the United Kingdom, and that its distillery remains open for tours seven days a week.

She also said the brand remains “the most awarded bourbon in American whiskey in the world” for the seventh consecutive year.

Weaver said she plans to offer a broader update in the coming weeks after the company’s new legal and finance teams have had more time to work through the Chapter 11 process.

For now, Tuesday’s statement signals that Uncle Nearest plans to continue operating under Chapter 11 while challenging Farm Credit’s claims in court.

Editor's Note: Filing for Chapter 11 bankruptcy does not "end" a receivership automatically; it pauses the process, halts foreclosure sales, and shifts control from the receiver to the bankruptcy court. It serves as a "reset" button, replacing state-level asset liquidation with a federal reorganization process, allowing the company to retain assets.