After Fawn Weaver Announces ‘The Receivership Of Uncle Nearest Is Done’ And Chapter 11 Filing, Receiver Requests Sanctions Against Founder – AfroTech

Sanctions have been brought forward against Uncle Nearest founder Fawn Weaver.

On Tuesday, March 17, Weaver took to Instagram to share a video that opened with her saying “the receivership of Uncle Nearest is done.” As AFROTECH™ previously reported, the whiskey brand founded by Weaver and her husband, Keith, had entered into a receivership after defaulting on more than $108 million in loans to its lender, Farm Credit Mid-America.

Tennessee attorney Phillip G. Young Jr. is the court-appointed receiver as of August 2025, which permitted him to oversee Uncle Nearest’s assets, including its distillery in Shelbyville, TN, as well as “real estate holdings, intellectual property, affiliated ventures, and related entities,” AFROTECH™ noted. Young also attempted to sell the Weavers’ Martha’s Vineyard property, though the sale was placed on hold by a federal judge until appraisals, notice, and a hearing are completed, the Moore County Observer reports.

After months under a receivership that the Weavers allege hurt sales volume and impacted Uncle Nearest’s market position and overall value, they claim the receivership has ended. A decision had been pending by a judge on whether to expand the receivership, as requested by the receiver, or end it, as requested by the Weavers, as AFROTECH™ previously mentioned.

“The receivership of Uncle Nearest is done,” Fawn Weaver said in an Instagram video. “If you’ve been reading the headlines lately, you probably thought that wasn’t possible, but rest assured it always was, and it is. I’m so grateful to God for our leadership team who kept their heads down and kept working.”

Fawn, Keith, and Grant Sidney, which is the largest shareholder in Uncle Nearest and is an investment holding company owned by Weaver, are now suing Farm Credit in the Supreme Court of the State of New York over an “alleged smear campaign” against Uncle Nearest. According to a press release, Fawn Weaver claims the accusations that circulated were false, and that the bank was aware they were false and would impact the brand’s credibility in the industry. The flagged accusations are missing inventory, financial misconduct, negative cash flow, and insolvency, which Weaver claims contradicted available documentation and yet were circulated in the press.

“More than 10 attorneys across New York, Atlanta, and New Orleans have spent the last seven months reviewing this evidence together, and to say that they are ready to litigate this case is an understatement,” Weaver explained in the video.

Furthermore, she announced that she approved the filing for Chapter 11 so that debts can be reorganized. The bankruptcy petitions were filed on behalf of Uncle Nearest, Inc., Nearest Green Distillery Inc., and Uncle Nearest Real Estate Holdings, LLC, in the U.S. Bankruptcy Court for the Eastern District of Tennessee, Knoxville Division, according to Young, per the Lexington Herald Leader.

The Chapter 11 filing would serve as protection for team members, Uncle Nearest creditors, and shareholders, according to Weaver in her video. She also said the reason for filing is to ensure there is financial transparency.

“No one gets to hide behind filings without evidence or accusations without proof, and the picture that has been painted about Uncle Nearest will now have to be proven through numbers that add up, not words,” Weaver said, per Instagram.

“Court filings associated with our Chapter 11 proceeding will reflect $13.2 million in unsecured obligations. The loan at issue with Farm Credit has a principal balance of $102.6 million, which the company disputes and will address that through claims and counterclaims against that lender. These liabilities, however, stack up against an enterprise value estimated at approximately $529 million. Chapter 11 is what has allowed so many of America’s long-standing companies to keep growing after running into challenges,” she continued.

Hours after Weaver announced approving the filing for Chapter 11, Young filed an expedited motion to block the petition, calling for sanctions to be placed against her and/or her counsel, Kelli Holmes of Tarpy, Cox, Fleishman & Leveille of Knoxville, TN, according to the Lexington Herald Ledger. The motion was filed for Weaver’s “wanton and willful violation of this Court’s order appointing the receiver,” he says. Young claims only the receiver has the authority to act on behalf of the company.

“The unauthorized bankruptcy filings and Defendant Fawn Weaver’s press releases announcing the same has created substantial confusion among Uncle Nearest’s customers, vendors, distributors, employees, and shareholders — not to mention the confusion and trepidation it has caused among potential buyers of its assets,” the receiver said, according to Lexington Herald Leader.

“Indeed, within just a few hours after the unauthorized bankruptcy filings, the Receiver received dozens of emails, telephone calls, and texts from various constituents inquiring about how these bankruptcy filings impact the ongoing business of these receivership entities. This has had an immediate and negative impact upon the operation of these businesses,” he added.

Young is pursuing $75,000 in penalties, payable to Uncle Nearest, against Weaver and, potentially, her attorney, the outlet notes.

He also said he considered and was leaning toward filing for bankruptcy protection, but believes the filings from Weaver were “premature and ill-conceived,” the Lexington Herald Leader reports.