Table of Contents
Key Points
- Uncle Nearest defaults on $108 million loan, triggering court-appointed receivership and legal scrutiny of its financial reporting.
- The whiskey brand’s valuation had reached $900 million after $220 million in capital raises since inception.
- Founder Fawn Weaver remains involved, shifting toward chief marketing role while company faces restructuring and third-party investigation.
In May 2024, Uncle Nearest, the American whiskey brand founded by Black entrepreneur Fawn Weaver, was experiencing a period of remarkable growth. The company had just acquired Square One Organic Spirits, marking its first step beyond whiskey, and announced an oversubscribed capital raise for its French subsidiary. By that time, Uncle Nearest had raised $220 million in total capital since its founding, pushing the brand to a $900 million valuation, a milestone that highlighted its rapid rise in the U.S. spirits market. But just months later, the company faced a stark reversal.
According to Forbes, Farm Credit Mid-America, the distillery’s main lender, on July 28, 2025, filed a lawsuit in the U.S. District Court for the Eastern District of Tennessee. The suit named Uncle Nearest, its Nearest Green Distillery, and co-founders Fawn and Keith Weaver as defendants. According to the filing, the company owed more than $108 million across multiple loans and accrued interest.
Court sets receiver recommendations deadline
The creditor also claimed that barrel inventory reports had overstated the value of Uncle Nearest’s reserves by $21 million, along with other unmet obligations. The suit argued that recent business adjustments had not produced the revenue the company had projected. On Aug. 14, a federal judge placed the distillery under court-appointed receivership, removing daily operational control from Weaver. Both the company and its creditor were ordered to submit further recommendations for receiver candidates by Aug. 20.
Uncle Nearest has pushed back against the allegations, calling many of them “salacious and inaccurate.” The company said it had kept the lender informed of its situation and was actively seeking solutions. In a statement, it confirmed that a former chief financial officer, implicated in fraudulent activity, had been dismissed, and that a third-party investigation was ongoing.
Weaver addressed the situation on social media, encouraging customers to continue supporting the brand and to participate in “Operation Clear the Shelves,” showing off their purchases online. Under a gag order limiting her public comments on the case, Weaver stressed her commitment to resolving the challenges while remaining at the helm of the company she founded. Creditors have expressed willingness to keep her involved, albeit in a chief marketing officer role.
Rapid growth, but loan default highlights growth challenges
Fawn Weaver’s entry into the spirits industry began with a personal revelation. A New York Times International Edition cover featuring Jack Daniel’s and George Green, the son of Nathan “Nearest” Green—the first African-American master distiller—sparked her curiosity. As she researched Nearest Green’s contributions to whiskey, she discovered a story long overlooked, full of innovation and craftsmanship.
In 2016, Weaver founded Uncle Nearest to honor that legacy. Under her leadership, the company quickly earned recognition. Between 2019 and 2023, Uncle Nearest became the most-awarded bourbon and American whiskey company globally. Its products reached over 30,000 stores, bars, hotels, and restaurants across all 50 states and 12 countries.
Within four years, the distillery became the seventh most visited in the world. Strategic distribution efforts expanded the brand from a single state to nationwide presence in under two years, placing Uncle Nearest among the top 10 ultra-premium American whiskey companies, a rare milestone for an independent spirits brand.
The company continued its growth in 2023 with the acquisition of Domaine Saint Martin, a historic Cognac estate, followed by Square One Organic Spirits in 2024. These moves marked a significant diversification of Uncle Nearest’s portfolio, signaling Weaver’s ambition to reach beyond whiskey. Yet, the default on the $108 million loan highlights the challenges that can come with rapid growth and aggressive expansion, even for a company that has broken barriers in the industry.
