Photo: skaman306 / Moment / Getty Images
The future of Uncle Nearest, a prominent Black-owned whiskey brand reportedly valued at $1 billion, is now uncertain after a federal judge in Tennessee placed the company under receivership.
The decision stems from a lawsuit filed in July by lender Farm Credit Mid-America, alleging the company defaulted on $108 million across three loans.
According to The New York Times, Farm Credit also claimed the company misused funds, including a $2 million estate purchase in Martha’s Vineyard. The suit says barrels of whiskey used as collateral were sold off to repay other debts, which was a violation of their agreement.
The judge’s order states that the receivership is intended to “safeguard the disputed assets” and protect Farm Credit’s investment. However, it leaves open the possibility for founder and CEO Fawn Weaver to remain involved, writing that she can continue to “market Uncle Nearest and further build the brand.”
“By keeping the Weavers involved in this way, they could mitigate any potential brand damage that a receivership might entail,” the judge said.
Fawn and her husband, Keith Weaver, who co-founded the whiskey brand in 2017, blame former CFO Mike Senzaki for misleading them by overstating inventory, which they say led to increased borrowing. They claim they fired him upon learning about the discrepancies.
In defense of the Martha’s Vineyard purchase, the Weavers submitted travel records and emails showing Farm Credit representatives had visited the property and joined in social activities there.
Fawn Weaver took to Instagram on August 3 to rally support amid the legal battle.
“My response has been filed, and I trust that the truth will now get just as much attention… as the intentional misleadings and hit pieces,” she said, urging followers to “clear the shelves” of their whiskey to demonstrate demand.
Both parties have until August 20 to submit receiver candidates. Weaver’s future role remains undecided.
The Black Information Network is your source for Black News! Get the latest news 24/7 on The Black Information Network. Listen now on the iHeartRadio app or click HERE to tune in live.