Troubled whiskey brand Uncle Nearest has a buyer. What the latest court filing says
AI-generated summary reviewed by our newsroom.
- Receiver filed that he has a signed non-binding letter of intent to buy most assets.
- Judge found Uncle Nearest insolvent with over $200 million in debts.
- Sale would not cover the Martha’s Vineyard or Cognac properties or Grant Sidney assets.
Less than a week after word leaked of a possible sale of Uncle Nearest, the receiver has confirmed it.
On June 1, the receiver filed a notice to the federal judge that he has a signed letter of intent to buy “substantially all” of Uncle Nearest assets to an undisclosed buyer.
The buyer is “an investment firm with an African-American ownership and leadership structure” that intends to maintain existing workforce and honor the brand’s cultural significance, according to the court filing.
Media mogul Jay-Z has previously invested in the company through an offshoot of his Marcy-Pen venture capital firm, formed in late 2024 and owned by Jay-Z, Jay Brown, Larry Marcus and Robbie Robinson, along with D’Rita Robinson. Jay-Z is a rapper, businessman and record executive married to Beyoncé.
“The purchaser is also committed to honoring the history of Nathan “Nearest” Green — the first African-American master distiller on record in the United States — and to providing the product inspired by Mr. Green to consumers nationally and globally,” the receiver said in the filing.
The sale, if it goes through, would be a huge step for the troubled brand, which is currently insolvent, with more than $200 million in debts, according to a recent finding by U.S. District Judge Charles E. Atchley Jr. The company has been in receivership since last fall, after Kentucky lender Farm Credit sued founders Fawn and Keith Weaver, alleging they had defaulted on more than $100 million in loans.
According to the latest filing, Receiver Phillip G. Young Jr. on May 29 entered into a non-binding letter on intend to sell most of the assets to a third party.
The sale would not cover the Martha’s Vineyard property in Edgartown, Massachussetts, that is already in the process of being sold; the property in Cognac, France; and any assets of Grant Sidney Inc.
Grant Sidney is the holding company owned by Fawn Weaver that was used to hide a controversial $20 million loan from media mogul Jay-Z.
The judge on May 26 expanded the receivership to include Grant Sidney and ordered the receiver to investigate whether it has any other assets that rightfully belong to Uncle Nearest and thus might be covered under Farm Credit’s loan agreement.
However, the Weavers have filed notice they intend to appeal this decision.
The receiver on Monday said in his filing that the purchaser of Uncle Nearest “has requested to remain confidential, subject to a signed non-disclosure agreement, until the execution of a formal asset purchase agreement,” which is expected to take place within approximately 45 days.
The purchaser allowed the receiver to share some limited details, including that they plan to “enhance sales and route to market capabilities through strategic partnerships.”
Additional details, including the identification of the purchase, the new ownership structure and future strategic directions of the brand will be disclosed “once the receiver is prepared to seek formal approval of this proposed sale,” according to the filing.
There was no mention of Fawn Weaver or any role she might have in the brand’s future.
The receiver also disclosed last week that he has hired outside counsel to help him address a related ongoing federal investigation, but did not reveal who or what is being investigated or by which agency.
Meanwhile, the appeal of Fawn Weaver’s attempt to file bankruptcy for Uncle Nearest is still waiting. On Monday, the receiver also filed a motion to dismiss the bankruptcy appeal.
