What’s next for troubled, major whiskey brand now in receivership?
AI-generated summary reviewed by our newsroom.
- Federal judge appoints Phillip G. Young as receiver for Uncle Nearest brand.
- Weavers may continue brand management under court-approved receiver oversight.
- Receiver granted authority to initiate Chapter 11 bankruptcy if deemed necessary.
A federal judge in Tennessee has appointed Phillip G. Young as receiver of Uncle Nearest whiskey brand and Nearest Green Distillery.
U.S. District Judge Charles E. Atchley Jr. said Young, who was proposed by Uncle Nearest founder Fawn Weaver and her husband, Keith, was the favored choice because of his extensive restructuring and bankruptcy experience, as well as the Weavers’ assertions that Young wanted to collaborate with them to preserve customer goodwill.
The judge’s order also states that the Weavers “may continue to market Uncle Nearest products and manage the Uncle Nearest brand, subject to the receiver’s supervision.”
The order came despite the judge’s footnote last week that remarks Fawn Weaver made on social media about a gag order in the case were “troubling.”
On Aug. 14, Atchley ordered the distressed whiskey brand into receivership after Kentucky lender Farm Credit sued over more than $108 million in loans in default. The spirits company produces Tennessee whiskey and bourbon and has been a fast-growing brand.
The receiver is tasked with preserving the assets including the Nearest Green Distillery property as well as other properties. All records and books from July 2022 to present must be turned over. The receiver must produce a quarterly report, with the first report due Oct. 1.
The receiver also is authorized to commence a Chapter 11 bankruptcy, which Keith Weaver told the Herald-Leader they have been reluctant to do.
In a news release, Young said the company’s day-to-day operations including whiskey production and distribution will continue without disruption.
“I understand that this news may raise questions, but I want to be clear that this is not a negative development for Uncle Nearest,” Young said. “Uncle Nearest’s primary goal remains unchanged: To continue producing the award-winning Tennessee whiskey that customers love and expect. I look forward to continuing the company’s strong commitment to its community, its partners, and to honoring the legacy of Nearest Green.”
The news release also included a statement of support from the Weavers:
“We fully support the court’s appointment of Phillip Young as receiver,” said Fawn and Keith Weave. “Many people misunderstand receiverships, but in some cases they are a powerful tool for strengthening a company. That is the case here.”
Young said there would be updates as appropriate throughout the process.
“My role is to serve as a neutral party, appointed by the court, to manage the company’s affairs in a way that benefits all stakeholders,” Young said. “I am confident that working with the dedicated team at Uncle Nearest, we will ensure a smooth transition and maintain the company’s reputation for excellence and quality.”
