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Uncle Nearest Receiver Requests For Court To Expand Receivership Or Company’s Distillery Could Be At Risk Of Foreclosure By Lender

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Phillip G. Young Jr. has requested that the receivership of Uncle Nearest be expanded, despite the founder’s pushback.

Receivership Explained

As AFROTECH previously told you, Young was appointed receiver of the company by U.S. District Judge Charles E. Atchley Jr. over claims by lender Farm Credit Mid-America that the whiskey brand had defaulted on more than $108 million in loans. In connection, founders Fawn and Keith Weaver are filing a civil lawsuit against the company’s former Chief Financial Officer, Mike Senzaki, over allegations of financial misconduct, including overstating the value of its whiskey barrels, which led to a $24 million credit increase from Farm Credit and contributed to the company being placed under a receivership.

Young currently manages the brand’s Shelbyville, TN, distillery, as well as its “real estate holdings, intellectual property, affiliated ventures, and related entities,” according to the Moore County Observer.

He has now addressed a claim reportedly made by the Weavers that Uncle Nearest owns approximately 56,000 barrels of whiskey that are valued at $78 million, or $1,400 a barrel, according to the Lexington Herald Leader. He stated that after attempting to sell 10,000 barrels for $1,000 each, he received no offers except from a company willing to pay about “$400 per barrel, for less than 1,000 barrels.”

As reasoning for the lower value, Young referenced details from a Texas bankruptcy judge handling the Stoli/Kentucky Owl case, stating that young barrels under 4 years old “have virtually no value” in today’s spirits market, and most of Uncle Nearest’s whiskey “was distilled less than four years ago,” per the outlet.

This comes after the Weavers filed an emergency motion on Jan. 20 requesting the removal of the receivership, as AFROTECH reported. The Weavers claimed that the company’s assets exceed outstanding debt, and they wish to reclaim management of the company.

Potential Sale

Young has been exploring options, including refinancing debt and selling the brand with the help of Arlington Capital, according to the Lexington Herald Leader. However, out of 100 parties, no qualified party was reportedly open to refinancing the debt, and only 12 formal, written letters of interest to purchase assets had been sent with pricing, he said.

Young shared that he was initially hopeful when considering Uncle Nearest’s revenue was said to be $75 million in 2024, “and there seemed to be excitement about the Uncle Nearest brand.” However, his accounting team claimed that the year’s figure was $41 million, and in 2025, revenue reached less than $25 million, per the outlet.

Young also told the Lexington Herald Leader that media coverage appeared harmful to a potential sale and pointed to the current state of the bourbon and whiskey market globally, stating it “went into freefall in the third and fourth quarters of 2025″ with bankruptcies, sales, and liquidations.

Grant Sidney Inc. — the largest shareholder of Uncle Nearest — as well as the Weavers, continue to push for the receivership to be ended, according to another article by the Moore County Observer. They claim sales volumes have declined under the receivership, but that the company is still financially healthy and can continue operations. However, financial analysts allege that Uncle Nearest would still lose nearly $10 million between January and the end of May if the receivership ends, according to the Lexington Herald Leader.

The Weavers are reportedly pushing for the end of the receivership due to a decline in Uncle Nearest’s market position, sales volume, and overall value. They claim they have a plan in place to reduce debt and stabilize the balance sheet, the Moore County Observer reports.

Why Young Wants The Receivership Expanded

On Feb. 2, Young requested that a federal judge expand the receivership. He is looking to manage Shelbyville Barrel House BBQ, Humble Baron, Grant Sidney, Quill and Cask Owner, Nashwood, Shelbyville Grand, and 4 Front Street, the Moore County Observer additionally reports. Young claimed in court documents filed in the U.S. District Court for the Eastern District of Tennessee that several businesses were operating as a single group, and alleges that funds had been mixed. He added that there were repeated transfers between the companies, with no proper documentation supporting loans, rent, or reimbursements, and with little adherence to customary business practices, per the outlet.

Young provided further context, stating that more than $16.6 million was transferred from Grant Sidney alone to other entities, and that this does not include the millions moving between Humble Baron, Quill and Cask, Nashwood, and others, the outlet notes.

Another reported issue, Young shared, was from February 2025 regarding two $10 million convertible promissory notes to MP-Tenn LLC, an entity linked to Grant Sidney, according to the Moore County Observer. Young stated that the money was transferred quickly through various accounts and sent to related companies, which supported the belief that Grant Sidney and Uncle Nearest function as one business. If this is the case, then he would request access to Grant Sidney’s financial records as well.

Young Seeking Access To Bank Records

Young claimed he does not have full access to bank records that would provide clarity around Uncle Nearest’s assets and liabilities, but has requested access to them several times, according to the Moore County Observer. He alleged that there are internal emails and banking details that provide validation of the existing amounts, which he had not been privy to.

Dawn Weaver responded to the $20 million transfer, stating that this accounts for her personal shares, which went entirely back to the business, she claimed in an email, according to the Lexington Herald Leader. She also stated that the receiver had not requested these records.

Uncle Nearest reportedly owes $20 million in debt, although the Weavers claimed it should be removed or forgiven, per the Lexington Herald Leader. Young alleged the company is unable to pay debts by both cash-flow and balance-sheet measures. He also claimed monthly losses under the receivership have decreased from $1 million to $100,000, but this does not factor in professional fees or debt payments. Additionally, Young noted that Farm Credit has agreed to pay a bill of $1.09 million “to retire a warehouse lien” on Uncle Nearest’s barrels of whiskey, per the outlet.

Young’s Prediction If Receivership Ends

Young alleged that if Fawn and Keith Weaver regain control of the business, “the company’s losses would be approximately $2 million per month,” according to the Lexington Herald Leader. He claimed that when he became receiver, he learned Uncle Nearest had been unable to fulfill $450,000 in payroll without a loan from a payroll processing company, repaid by advances from Farm Credit.

There will be a hearing to decide whether the receivership will be expanded or access to proprietary information will be reduced, according to the outlet. Farm Credit requested the receivership, so Young stated that if it ends, Uncle Nearest could move towards foreclosure.

“I believe that Farm Credit would immediately cease covering these operational losses and move to foreclose on and repossess its collateral,” Young said in an affidavit, according to the Lexington Herald Leader.

If Farm Credit decided to withdraw from Uncle Nearest as a lender, that would place the whiskey brand accountable for $164 million in debt, including an estimated $22 million in debts to vendors, the outlet reports.

“Furthermore, based upon correspondence I have had during this receivership, I anticipate that the company would immediately be the defendant in dozens of suits by creditors and shareholders across the country,” the receiver said, per the Lexington Herald Leader.

Young mentioned that Fawn Weaver had pointed to an acquaintance as a possible refinancing source, and he is not opposed to that, so the company can remain in business. He claimed, “That’s my preference,” according to the outlet. He also added that a sale of Uncle Nearest in the next six months is the best option to maximize the company’s and its assets’ value.

A hearing is scheduled for Feb. 9.

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