Uncle Nearest Lender Argues That Additional ‘Comingled,’ Personally Owned Entities Should Be Added to Receivership
The ongoing lawsuit between Tennessee-based whiskey brand Uncle Nearest, Inc. and its primary lender, Farm Credit Mid-America, continues to escalate.
On Friday, the bank filed a motion alleging that 11 distinct entities overlap with Uncle Nearest, Inc., in a move to expand on a judge’s previous order that placed Uncle Nearest, Inc. into receivership. As such, Farm Credit Mid-America argues that these assets should be “placed squarely within the scope of the receivership.”
The lawsuit against Uncle Nearest, Inc., its founder Fawn Weaver, and her husband, Keith, was first filed on July 28 and alleged that the defendants had defaulted on over $108 million in loans as far back as January 2024. The filing also included claims that Uncle Nearest had overstated barrel inventory values by over $20 million, often using these barrels as a means of paying off other debts. Weaver has adamantly denied all allegations in a series of posts on social media.
On August 11, the case was taken a step further, with a federal judge issuing a gag order for Weaver, barring the founder and CEO from making any public statements about the case without court permission. The next week, Uncle Nearest, Inc. was placed into receivership by the same federal judge. And now, roughly two months after the initial receivership order was granted, Farm Credit Mid-America is alleging that more assets should be included.
In a document filed on Friday, the lender alleges that “a significant overlap appears to exist between the operation, finances, and likely the personnel of Uncle Nearest and the Additional Entities.” The motion goes on to argue that some of these entities have received assets or proceeds from Uncle Nearest, or Uncle Nearest has paid these parties’ obligations (or vice versa).
Additional entities mentioned in the filing include Grant Sidney, a privately held investment company founded by Weaver, which Farm Credit points out, per information on Uncle Nearest’s website, is enmeshed in the corporation. “Uncle Nearest Premium Whiskey and Nearest Green Distillery are owned by Uncle Nearest, Inc. and Uncle Nearest, Inc. is owned by Grant Sidney. Grant Sidney Inc. is wholly owned by Fawn Weaver.”
Humble Baron, Inc., a Delaware Corporation that shares a name with Humble Baron Bar at Nearest Green Distillery is also named. The suit mentions that the entity “appears to be owned by a blind trust that benefits Keith Weaver.” It is alleged that the funds and operations of Uncle Nearest, Inc. and Humble Baron, Inc. appear to to be “comingled,” with the former having had paid a settlement agreement on the latter’s behalf. Also mentioned in the litigation is a claim that Uncle Nearest, Inc. made two payments (March 22, 2023 and April 29, 2024) to Guinness World Records totaling over $100,000. On March 23, 2023, Humble Baron at Nearest Green Distillery was named the record holder for longest bar in the world.
The remaining nine entities include Uncle Nearest Real Estate Holdings LLC; Shelbyville Barrel House BBQ, LLC; Uncle Nearest Spurs, VI, LLC; Quill and Cask Owner, LLC; Nashwood, Inc.; Classic Hops Brewing Co.; Shelbyville Grand, LLC; Weaver Interwoven Family Foundation; and 4 Park Street, LLC.
Whether a judge grants the claims remains to be seen.
The article Uncle Nearest Lender Argues That Additional ‘Comingled,’ Personally Owned Entities Should Be Added to Receivership appeared first on VinePair.