Just a few years ago, Uncle Nearest Premium Whiskey was making headlines for being a new upstart distiller that was winning awards for its bourbon after only being open for a short time. And they were being hailed for being owned by a minority woman and honoring the legacy of Nearest Green, the former slave who taught Jack Daniel how to make whiskey and who acted as his first master distiller. Now, the company has been placed under federal receivership for defaulting on more than $108 million in loans.
Brand founder Fawn Weaver has denied wrongdoing and blames the company’s former Chief Operating Officer, Michael Senzaki, for financial mismanagement of the business. However, the questions about the business have also brought up questions about the Nearest Green Foundation, which was set up to support Nearest Green’s descendants.
Weaver sold the brand on the moral foundation of bringing justice to Green’s history, hiring several of his descendants to key staff positions. But as the receivership story continues to unfold, supporters are asking for answers and transparency as Weaver asks for solidarity in spite of murky information coming from the company, according to WGNS radio.
A recent Forbes article discusses how Weaver was on the magazine’s “2024 edition of America’s Richest Self-Made Women list. Weaver debuted with a net worth of $480 million, thanks to an Uncle Nearest valuation of $1.1 billion. In that profile, she made her ambitions for the distillery clear, even as critics warned that she was expanding too fast. ‘I’m going to build it large as hell,’ she said of Uncle Nearest. ‘When I pass it on [to the Green family], I don’t want it to be a $10 billion company. I want it to be a $50 billion company.’ But as the brand’s financials weakened along with the spirits market downturn, Weaver did not make the 2025 list.”
According to tasteselectrepeat.com, “A multi-million-dollar lawsuit has been filed against Uncle Nearest, Inc., and its founders, Fawn and Keith Weaver. The lawsuit, filed by primary lender Farm Credit Mid-America, alleges that Uncle Nearest has defaulted on over $100 million in loans and misused company funds. Uncle Nearest Whiskey is one of the best-known black-owned liquor brands in the country. The suit is seeking the appointment of a receiver to take over management of the company, a move the lender says is necessary to protect its collateral and rights.”
The tasteselectrepeat.com article goes on to say, ”The lawsuit claims that Uncle Nearest secured loans by overstating its barrel inventory values by $21 million. It further alleges that the company then sold off these whiskey barrels, which were collateral for the loans, to pay off other debts rather than repaying the lender. The brand is also accused of selling “discounted future revenue streams” without informing Farm Credit Mid-America, thus reducing the value of the lender’s collateral.” According to Weaver, only Senzaki knew the barrel inventory figures.
There are also questions about a home the Weavers bought in Martha’s Vineyard. The lawsuit states it was bought with company funds and not personal ones.
Also, in October 2023, Uncle Nearest acquired the French cognac brand Domaine Saint Martin, making it the first American company to own a significant cognac brand.
Fawn pushed back against the appointment of a receiver, arguing that the lender was aware of the circumstances that led to the technical default, and that Farm Credit Mid-America was already working with Uncle Nearest to amicably resolve the issue, added the tasteselectreleat.com article.
At the receivership hearing, Nearest Green attorney Rocklan King affirmed the company had defaulted on their loans. Apparently, there had even been discussions about filing for bankruptcy. However, he stated that the Weavers were fully committed to repaying their loans as they didn’t want to lose control of the brand. Keith Weaver stated at the hearing that losing Fawn as the face of the brand would be devastating.
Not at the hearing, Fawn has been on social media trying to sell stock to save the company, asking supporters to “clear the shelves.”
The Lexington Herald reported that “U.S. District Judge Charles E. Atchley Jr. appointed Nashville Phillip G. Young, who was proposed by Uncle Nearest founder Fawn Weaver and her husband, Keith, over the receivership because of his extensive background in restructuring and bankruptcy experience, as well as the Weavers’ assertions that Young wanted to collaborate with them to preserve customer goodwill.”
The receiver must work to preserve the assets owned by the Nearest Green Distillery. While the Weavers are allowed to continue to market the brand, they must turn over all records and financials from July 2022 to the present, and get permission before moving forward with their plans. The receiver will produce the first quarterly report concerning the status of the business on October 1, 2025.
Please join our FREE Newsletter
