The founders of Nearest Green Distillery in Tennessee are opposing efforts to expand receivership over their business interests. The distillery and its associated brand, Uncle Nearest whiskey, have been under the control of a receiver since September 2023. This action followed a request from Kentucky-based lender, Farm Credit, after the Weavers reportedly defaulted on loans exceeding $108 million.
Background on Nearest Green Distillery
Nearest Green Distillery, located in Shelbyville, Tennessee, is significant as it is a representation of the growing whiskey industry. However, it faces financial troubles amid a national downturn in spirit consumption and decreasing exports influenced by trade policies during Donald Trump’s presidency.
Court Developments and Opposition
On a recent court filing, the receiver, Phillip Young, sought clarification from U.S. District Judge Charles Atchley Jr. regarding the inclusion of other business assets in the receivership. This clarification encompasses potential assets such as a restaurant and entertainment venue situated at the distillery.
Claims by the Weavers
- The Weavers contend that 10 entities should remain outside the receivership as they are not financially connected to the distillery.
- They argue that including these businesses would strip them of their financial interests.
- The Weavers assert that Uncle Nearest is not insolvent and can manage its debts independently.
In their legal documents, the Weavers have countered Farm Credit’s claims of financial misconduct, stating that the accusations have adversely affected their reputable standing and business relationships. They argue that such claims lack robust supporting evidence and are intended to undermine their interests.
Details of the Entities Challenging Receivership
The Weavers are specifically contesting the inclusion of diverse businesses, which include:
- Humble Baron Inc.: Operates the Guinness World Record-certified longest bar in the world, located within the distillery grounds.
- Grant Sidney Inc.: Holds approximately 40% of Uncle Nearest shares and has provided financial support to the distillery.
- 4 Front Street: A company in which Keith Weaver has a minority interest.
- Quill and Cask Owner LLC: A company owned by Keith to buy and sell various assets, including whiskey.
- Shelbyville Barrel House BBQ LLC: Operates a food venue at the distillery, owned by Keith Weaver.
- Classic Hops Brewing Co.: A brewing venture under development by Keith Weaver.
- Nashwood Inc.: A hospitality and real estate company owned by Keith Weaver.
- Shelbyville Grand LLC: Manages real estate related to the distillery.
- Uncle Nearest Spurs VI LLC: A special purpose company created by Fawn Weaver without operational activity.
Conclusion
The court will ultimately determine whether the additional businesses will fall under receivership. The Weavers maintain they have been unjustly impacted by the financial issues surrounding Nearest Green Distillery, continuing to assert their operational independence. The outcome of this case could have profound implications not only for the founders but also for the broader distilling industry facing operational challenges.
