Fran Weaver, the founder, CEO, and largest shareholder of the Uncle Nearest whiskey brand, has lost her bid to take back control of the struggling company.
The company has been operated by receiver Phillip G. Young Jr. since August.
On March 19, Weaver filed a lawsuit against Farm Credit Mid-America in the Supreme Court of the State of New York, alleging the lender engaged in a smear campaign against the fast-growing whiskey brand by knowingly circulating false accusations, including claims of missing inventory, financial misconduct, negative cash flow, and insolvency, the company shared in a press release.
“The accusations circulated about us were not only false. The bank knew they were false when they made them, and they knew those accusations would strike directly at the credibility that allowed this brand to grow against all odds in this industry,” said Uncle Nearest CEO Fawn Weaver.
In addition to the lawsuit, she filed a Chapter 11 bankruptcy petition on behalf of the company. Now, a federal judge has thrown out that filing.
When a company gets put into a receivership, that’s usually a last-ditch effort to save the brand.
“The receiver’s job is to literally operate the business,” said John Mark Jennings, a partner in the law firm of Shulman Hodges & Bastian LLP to Smart Business. “A receivership is an action brought against your company because it is being operated to the detriment of shareholders or creditors.”
Young had been charged with doing that and had worked on a plan to sell off the company’s non-core assets. Weaver wanted to regain control with her lawsuit and Chapter 11 bankruptcy filing, but those efforts were denied.
“U.S. Bankruptcy Judge Suzanne Bauknight ruled March 19 that Fawn Weaver, who launched Uncle Nearest in 2017, was not authorized to file the bankruptcy petitions she submitted on behalf of the company earlier this week. Uncle Nearest is under the control of a receiver who was appointed to steer the company while a lawsuit against the company over more than $100 million in unpaid debt plays out,” Knox News reported.
Tennessee whiskey brand Uncle Nearest was placed into court-ordered receivership in August 2025 after a lawsuit from lender Farm Credit Mid-America alleged the company defaulted on roughly $108 million in loans and lines of credit, according to Forbes.
A federal judge appointed a receiver to oversee the company and manage its assets while the lender attempts to recover the debt. The move temporarily removed control from founders Fawn and Keith Weaver, reported Axios.
The lawsuit claims the whiskey company violated loan terms and failed to maintain required financial conditions while carrying more than $100 million in liabilities, according to Forbes.
Court filings also alleged the company overstated the value of whiskey inventory used as collateral and failed to maintain required cash balances under the loan agreement, Forbes added.
The court-appointed receiver has explored selling non-core assets—including vineyards, real estate, and other alcohol brands—to raise cash and stabilize the company, according to TheStreet.
Despite the financial dispute, the company has continued operating while the legal process unfolds, with investors and lenders negotiating potential restructuring options, added TheStreet.
