Weavers again seek to end Uncle Nearest receivership

2:59 p.m. Feb. 5, 2026

DUANE CROSS
MCO Publisher•Editor

Attorneys for the founders of Uncle Nearest have again asked a federal judge to terminate the court-ordered receivership overseeing the whiskey company, arguing that the business is solvent, capable of paying its debts, and is losing value under the receiver’s control.

The request was filed in the U.S. District Court for the Eastern District of Tennessee as part of a reply supporting an emergency motion to reconsider earlier orders that placed the company into receivership.

At the same time, lender Farm Credit Mid-America asked the court to seal certain declaration exhibits filed in the case, saying they contain personal identifying information that must be redacted before public release.

• FCMA Motion | Movants' Emergency Motion

Founders Challenge Need for Receivership

Grant Sidney Inc. and founders Fawn and Keith Weaver argue the key issue before the court is whether continuing the receivership “makes sense based on the current situation and the direction of the Company,” noting the receiver has controlled operations for about five months and charged more than $2 million in fees.

They contend the receiver has found no evidence of fraud by current management, has provided limited financial reporting, and has not pursued claims involving a former chief financial officer who allegedly admitted fraudulent conduct before the receiver’s appointment.

The Weavers also claim retail sales of Uncle Nearest products declined sharply during the receivership, a drop they say cannot be explained by broader industry trends.

Dispute Over Solvency and Asset Values

Central to the motion is whether Uncle Nearest is insolvent.

The founders argue that federal and Tennessee law use a balance-sheet test – comparing total debts to total assets – and maintain that the company’s assets exceed its liabilities.

They point to several major assets, including:

• The Nearest Green Distillery property, previously valued at $65 million or more in proposed sale-leaseback discussions.

• About 56,000 barrels of aged whiskey with an estimated value near $78 million based on conservative pricing assumptions.

• Real-estate holdings in Martha’s Vineyard are valued at around $4 million, and in Cognac, France, are valued at least $2 million.

They further assert that the Uncle Nearest brand itself could be worth more than $500 million, based on past valuation multiples applied to reported 2024 revenue of approximately $41 million, which would far exceed the roughly $160 million in debt cited by the receiver.

Cash Flow and Sales Performance Claims

The Weavers argue that the company can meet its operating obligations without additional lender funding, once receiver fees are excluded, citing internal cash-flow projections and statements attributed to the receiver that the business would be cash-flow positive absent receivership costs.

They also claim Uncle Nearest outperformed the broader whiskey market before the receivership but underperformed afterward, attributing the decline to management changes, distributor relations, and halted marketing initiatives.

Potential Restructuring Interest

Court filings also reference a December 2025 expression of interest from an investor group proposing a transaction involving $108 million to resolve debt, provide working capital, and restructure the company under court supervision.

The investors warned that prolonged receivership could erode brand value, distributor relationships, and employee retention.

Lender Seeks Sealed Filings

Separately, Farm Credit Mid-America asked the court to seal certain exhibits connected to declarations filed Tuesday, Feb. 3, stating they contain personal identifying information that must be redacted before public filing.

The lender said it will refile redacted versions in compliance with federal and local court rules.