Uncle Nearest Premium Whiskey’s financial troubles just seem to get worse every month. Most recently, a court-appointed receiver has evaluated the sale of several of the company’s non-income-producing properties. This included its prized vineyard and estate in Cognac, France.
Financial Drama Continues
The decision comes on the heels of the Aug. 22 appointment of receiver Phillip G. Young Jr., after lender Farm Credit Mid-America accused Uncle Nearest of defaulting on $108 million in loans. The Tennessee-based whiskey maker, founded by entrepreneurial couple Fawn and Keith Weaver, was placed under receivership after a federal judge determined there was “not adequate security” for Farm Credit’s loans and pointed to uncertainty around the company’s solvency.
Young said he remains “encouraged about the long-term viability of the company” and believes Uncle Nearest “has significant value and can be reorganized, as a going concern, on a relatively quick timeline.” And, according to his initial review of the company, he stated he found there needed to be operational cuts, including a 13 percent workforce reduction.
Under Young’s restructuring plan, he is looking into if Uncle Nearest should sell certain non-income generating assets. One of the company’s most notable assets under review is Domaine Saint Martin, the 100-acre vineyard and estate in Cognac, France, that Uncle Nearest acquired in 2023 as part of a planned expansion into the Cognac market, The Spirit Business reported.
The estate, located along the Charente River, was intended to help the company build a new Cognac brand, which the Weavers had planned to launch in 2024. According to the receiver, debuting the brand now would cost $15 million to $25 million in investment and such funds the company “lacks the ability to make at this time.”
Young Jr. confirmed that one offer and two additional inquiries have been received for the Cognac property and he added that he will file a motion to sell once the best proposal has been identified. He is also reviewing the possibility of selling Uncle Nearest’s recently acquired vodka business, Square One Organic Spirits, which the company purchased in May 2024.
Despite this financial setback, Young Jr. stressed he still believes that Uncle Nearest long-term potential. Farm Credit has also agreed to fund a $2.5 million shortfall in the company’s 13-week operating budget, which could help Uncle Nearest stabilize. Yet, the Weavers no longer have control over the company. This whiskey drama will have to play out.
