Uncle Nearest, the award-winning whiskey brand founded in 2016 and inspired by the legacy of enslaved master distiller Nearest Green, has been ordered into receivership following a lender dispute. A lawsuit filed in July by Farm Credit Mid-America, a cooperative financial services company, accuses the brand of breaching contract terms after defaulting on loans totaling $108 million with interest. The filing further alleges inflated barrel inventory used as collateral, misstated details about the purchase of a $2.25 million Martha’s Vineyard property, insufficient cash reserves below the $1.5 million loan requirement, and inadequate financial controls.
Founder and CEO Fawn Weaver has denied wrongdoing, calling the lawsuit “inaccurate” and pointing instead to alleged misconduct by a former CFO. In a court filing, Weaver and her husband argued they “were, and are, victims of fraud — not perpetrators or conspirators.” Still, Weaver cautioned that appointing a receiver would do “irreparable harm” to the brand. During an Aug. 7 court hearing, however, Uncle Nearest’s attorney conceded the company would likely default on an upcoming $10 million payment.
Despite its financial troubles, the Shelbyville, Tenn.–based distiller remains one of the fastest-growing spirits brands in the country, with distribution across all 50 states and expansion into 12 international markets. Since launching Uncle Nearest after uncovering Green’s story, Weaver has built the label into both a critical and commercial powerhouse, investing heavily in marketing—including a Jeffrey Wright–starring short film—and earning industry praise for championing diversity while honoring heritage.