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.

Uncle Nearest remains under receivership

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.

Uncle Nearest’s financial troubles so far

• Tennessee whiskey brand Uncle Nearest was placed into court-ordered receivership in August 2025 after a lawsuit from lender Farm Credit Mid-America alleging 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.

Uncle Nearest’s fate remains unclear

The judge’s ruling keeps the company out of Chapter 11 bankruptcy for now. Young has been aggressive in asserting his control of the company and keeping Weaver sidelined.

“Late March 17, receiver Phillip Young filed an expedited motion for sanctions against Weaver and/or her counsel for Weaver’s ‘wanton and willful violation of this Court’s order appointing the receiver.’ Under that order, only the receiver has the legal authority to take actions on behalf of the company,” according to the Lexington Herald Leader.

That motion has not been ruled on yet.

Young made it very clear that Weaver did not have the authority to file for Chapter 11 bankruptcy.

More Uncle Nearest:

• 159-year-old whiskey brand files disputed Chapter 11 bankruptcy
• Uncle Nearest placed under receviership, faces liquidation

“Despite the clear orders of this Court that the Receiver, and only the Receiver, could act on behalf of the receivership entities, on March 17, 2026, Defendant Fawn Weaver signed and filed bankruptcy petitions on behalf of Uncle Nearest, Inc., Nearest Green Distillery Inc., and Uncle Nearest Real Estate Holdings, LLC in the United States Bankruptcy Court for the Eastern District of Tennessee, Knoxville Division,” the receiver said in the filing, which can be found on PacerMonitor.

Weaver’s lawyer stated that despite the receivership, she had the right to make the Chapter 11 filing.

Uncle Nearest continues to operate despite its ongoing legal woes.

Shutterstock

Fight for Uncle Nearest control continues

“There is nothing in 10 q. [the section in question] that states the receiver has exclusive authorization to file nor excludes anyone else from filing,” Weaver’s attorney, Kelli D. Holmes told VinePair.

That is true, however, the section of the receivership order directly prior explicitly states “The Receiver shall be exclusively vested with: (a) all the powers of officers, directors, members, and/or managers (as applicable) of Uncle Nearest.” Another section enjoins anyone but the receiver from “disturbing, interfering or affecting the Receivership Assets or the administration of the receivership estate.”

In a separate filing Tuesday evening with the receivership court, Young requested an “expedited motion for sanctions,” citing the the bankruptcy filing and a Tuesday press release from Grant Sidney, a nominally unrelated asset controlled by Fawn Weaver that has been the subject of scrutiny due to allegedly commingling funds with Uncle Nearest, as evidence of her “wanton and willful violation of this Court’s Order Appointing Receiver.”

Related: 63-year-old sporting goods retailer files Chapter 11 bankruptcy