Weavers seek end to receivership
Uncle Nearest owners argue continued oversight is damaging sales, brand value
7:o8 a.m. Dec. 24, 2025
DUANE CROSS
MCO Publisher•Editor
The founders of Uncle Nearest Inc. have asked a federal court to end the receivership managing the Tennessee whiskey company. They say the original reasons for this action no longer apply and that the receivership is now hurting the business.
On Tuesday, Dec. 23, Fawn Weaver and Keith Weaver, together with Grant Sidney Inc., the company’s largest shareholder, filed a 72-page motion in the U.S. District Court for the Eastern District of Tennessee. They are asking the court to reconsider its August decision to appoint a receiver and take control of Uncle Nearest. The motion also requests that the court temporarily stop the receiver from disclosing confidential company information to others while the request is being reviewed.
The case stems from a lawsuit filed in July by Farm Credit Mid-America, PCA, alleging loan defaults and seeking an emergency receivership to protect its collateral. The court granted that request in August, emphasizing that receivership is an extraordinary measure and stating it would be tolerated “only so long as it is necessary” to protect Farm Credit’s interests.
The new filing says that the main concerns that led the court to appoint a receiver, such as doubts about solvency, collateral, and possible financial misconduct, have now been “debunked,” mostly by the receiver’s own findings.
Receiver Finds Company Solvent, No Fraud by Founders
The motion often refers to the receiver’s First Quarterly Report, filed on Oct. 1. The report says the company has “significant value,” strong long-term prospects, and can continue operating. It also states that Uncle Nearest’s assets exceed its debts, its barrel inventories are in order, and Farm Credit’s loans are fully secured.
The receiver found no evidence of misappropriation, theft, or financial wrongdoing by the founders or current management. The report says any fraud was limited to a former chief financial officer who has already left the company.
The founders say these findings remove the legal reason for keeping the receivership. Under Tennessee law, insolvency means debts are greater than assets at fair value, which they argue is not the case for the company.
Sales Decline Tied to Receivership
The motion also claims that the receivership is hurting Uncle Nearest’s value. It cites NielsenIQ retail sales data, showing that sales remained positive after Farm Credit filed the lawsuit but began to drop immediately after the receiver was appointed.
The founders say the receiver’s focus on saving cash and preparing for a possible sale, instead of marketing and growth, has caused the company to lose momentum in a competitive market. They believe it is expected for the brand to shrink during a downturn if marketing is cut back or delayed.
“The termination of the Receivership is necessary to right this ship,” the motion says, warning that if the decline continues, it will reduce long-term value and harm all stakeholders.
Objections to Sale Process and Information Sharing
The motion also objects to the receiver hiring an investment banker and seeking a possible sale or forced refinancing before Farm Credit’s claims are settled. The filing says this has caused market uncertainty and could expose sensitive company information to competitors.
Because of this, the founders are asking the court to temporarily stop the receiver and his team from sharing company data with third parties until a hearing.
Claims Against Farm Credit Foreshadowed
If the receivership ends, the founders say Uncle Nearest plans to make defenses and counterclaims against Farm Credit. They allege that the lender approved large credit draws initiated by a former CFO who is no longer trusted and made false statements to the court about the company's transactions.
The motion also accuses Farm Credit of acting with “unclean hands.” It claims that some of the lender’s statements, especially regarding a Martha’s Vineyard property purchase, were knowingly false and led to the receivership being imposed.
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