Fawn Weather Declares ‘Smear Campaign’ in Battle for Uncle’s Nearest Trusteeship

Uncle Closest founder and CEO Fawn Weaver is denouncing what she calls a “smear campaign” in her company’s ongoing receivership case.

Weaver spoke about the ongoing curatorial battle during a fireside chat titled “Reclaiming Your Company in Turbulent Times” at the “Inc. 5000 Conference” on Oct. 24, which discussed the company’s reported default on $108 million in loans to Kentucky lender Farm Credit.

“Martha’s Vineyard was a smear campaign tactic,” Weaver said captured Through Inc. “Their hope was that the judge would see it, accept the swab and hand over the keys to my company.”

Earlier this month, trustee Phillip Young asked a judge to decide whether additional assets tied to the Uncle Nearest distillery — including the whiskey, a restaurant and entertainment venue in Shelbyville, Tenn., and a Martha’s Vineyard estate purchased by the Weavers in 2023 — should be included in the receivership.

On October 21, Weaver, who founded the company with her husband Keith, submitted a response opposing the trustee’s request to bring ten additional companies under judicial supervision. The liquidator had asked for ‘clarification’ on whether or not these entities should be taken into account, citing the apparent commingling of finances with the distillery which went into administration in September.

In their filing, the Weavers argued that the entities are separate from the distillery and not responsible for its debts, warning that placing them under the receiver’s control would deprive them and others of their financial interests. The motion also claims that Uncle Nearest is not insolvent and has sufficient assets to cover its delinquent loans without other companies being involved.

“If you can make the judge believe that we embezzled money to buy a property, a vacation home, let’s be clear: I’m from California, what I’m not going to do is buy a vacation home that’s not on the water in a city where it’s not sunny nine months out of the year,” Weaver said at the conference.

Weaver’s latest filing follows an August motion alleging that Farm Credit’s receivership request “ignores critical context” and that the lender failed to take appropriate legal action to secure its claim to the property as collateral in the event of a loan default, a point Weaver reiterated during the conference.

“They had no security over our collateral. And the question becomes, why not? Why didn’t you ask to perfect seven of our eight pieces of real estate? Martha’s Vineyard is just one of them,” Weaver said.

Nearest Green Distillery and Uncle Nearest whiskey were placed under the control of a receiver last month. Celebrated as the second best-selling Tennessee whiskey in the United States after Jack Daniel’s, the brand has earned numerous accolades and continued sales growth despite a post-pandemic downturn in alcohol consumption.

But the distillery is facing financial challenges as Americans drink less and exports decline due to trade tensions sparked by President Donald Trump’s tariff war. Despite the receivership, Weaver remains committed to the company she founded and sees the struggle as part of the risks inherent in entrepreneurship.

“Every entrepreneur will have a moment when it seems like all is lost,” Weaver said. “The only difference between those who have been the most successful entrepreneurs in American history and those who have failed are those who gave up halfway through.”

RELATED CONTENT: Uncle nearest CEO Fawn Weaver is ‘unwavering and unmoved’ by the receivership order