Whiskey brand Uncle Nearest and its founders, Fawn and Keith Weaver, are facing a federal lawsuit from a Louisville-based creditor, Farm Credit Mid-America.
The suit alleges the company has defaulted on over $100 million in loans. The suit also seeks to have a receiver appointed to take control of the distillery.
Uncle Nearest was named the fastest-growing American whiskey brand in history by Forbes in 2024. It has surpassed a $1 billion valuation and scaled to a 458-acre distillery. It can be found in over 30,000 stores, bars, hotels, and restaurants in 12 countries, according to AFROTECH.
The company was launched in 2017 by CEO Fawn Weaver and her husband, Keith, and upholds the legacy of Nathan “Nearest” Green, a formerly enslaved man credited with teaching Jack Daniel how to make whiskey.
Lawsuit claims Uncle Nearest has been in default of loans
According to the complaint filed in the U.S. District Court for the Eastern District of Tennessee, Farm Credit Mid-America claims Uncle Nearest has been in default on its loans since as early as January 2024.
The lawsuit details a number of alleged breaches of contract. It includes the failure to make principal and interest payments on a revolving loan and other term loans. The total amount, including accrued interest, is now claimed to be over $108 million.
Among the specific allegations are that the Weavers used loan proceeds to purchase a $2.2 million home in Martha’s Vineyard. This was allegedly through a separate entity, then mortgaged the property to another lender. This was reportedly in violation of the original loan agreement.
The creditor also alleges that Uncle Nearest significantly overstated the value of its whiskey barrel inventory. This served as collateral for the loans, and sold off some of these barrels to pay other creditors, all without the lender’s knowledge.
Additionally, Farm Credit claims they’ve failed to maintain a minimum net worth of $100 million, a condition of the loan.
Fawn Weaver took to Instagram to offer her side on the “hit piece.”
Weavers say lawsuit allegations are “demonstrably false”
In their response, the Weavers have vehemently denied the allegations, calling them “demonstrably false.”
They have placed the blame for the inflated barrel inventory on a former chief financial officer. The Weavers claim that individual acted alone and has since been terminated.
The Weavers also say that the creditor was fully aware of the Martha’s Vineyard property purchase and that the lender’s employees even attended events there.
In a public response, Fawn Weaver has launched an impassioned defense of the company, stating that Uncle Nearest is having its “strongest year ever” and that the brand is a “shining star” in a challenging industry.
As the legal battle unfolds, the future of the popular and rapidly growing whiskey brand hangs in the balance.
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