Shelbyville, TN - Just down Highway 231-South in Shelbyville, the Nearest Green Distillery, home of the celebrated Uncle Nearest whiskey brand, is facing a dramatic shake-up. On August 14, 2025, Federal Judge Travis R. McDonough, US District Court for the Eastern District of Tennessee, placed the distillery into receivership following a lawsuit from lender Farm Credit Mid-America, which claims the company defaulted on over $108 million in loans.

The court’s decision bars founders Fawn and Keith Weaver from selling any assets and transfers operational control to a court-appointed receiver. Allegations include misuse of loan funds, such as a $2 million property purchase on Martha’s Vineyard and the sale of whiskey barrels that were pledged as collateral. The Weavers dispute some of the claims, pointing to their former CFO, Mike Senzaki, as the source of inventory misrepresentations that inflated credit lines.

Despite the legal turmoil, the distillery’s doors remain open. As of August 16th, WGNS confirmed that tours and restaurant services at the Shelbyville property are running as usual.

The court has asked both parties to propose receiver candidates by August 20, 2025, and enter third-party mediation. Fawn Weaver, the brand’s founder and public face, may still play a role in marketing to preserve the brand’s image.

With Uncle Nearest hailed as a trailblazer in the spirits industry—especially as a Black-owned business—the outcome of this case could have lasting implications for its legacy and future.