159-year-old liquor brand facing Chapter 11 bankruptcy, sale of assets

  • The company is in a court-ordered bankruptcy case.

  • Selling the property is part of her plan.

  • Chapter 11 bankruptcy, but not Chapter 7 liquidation, remains a possibility.

Very few brands trace their history back to the 1950s, and almost no brands are literally created to right a historical wrong.

But Uncle Nearest’s origins go back to the founding of Jack Daniel’s. It’s not the prettiest story (there weren’t many during slavery), but it’s a story with an inspiring ending.

  • Nathan “Closer” Green was a formerly enslaved man who became a master distiller and is credited with teaching young Jasper Newton “Jack” Daniel how to distill whiskey. Source:CBS News

  • After emancipation, Nearest became Jack Daniel’s first “head stopper” (master distiller).

  • The Uncle Nearest brand was later created (launched in July 2017) in honor of Nearest Green, celebrating his legacy. Source:Professor of Alcohol

  • The brand emphasizes reclaiming and telling this story; For example, founder Fawn Weaver researched and documented Nearest Green’s history and descendants. Source:Professor of Alcohol

  • in 2020 Uncle Nearest and Jack Daniel’s (owned by Brown-Forman Corporation) have partnered on an initiative to promote diversity in the whiskey and spirits industry (Nearest & Jack Advancement Initiative).

Brown-Forman has no ownership interest or business relationship other than working together on the aforementioned initiative.

The Uncle Nearest brand has been in financial trouble, but a recent court ruling suggests it will survive.

“Uncle Nearest Inc. is preparing to sell non-core assets, including French vineyards, a cognac château and other properties, as part of an effort to stabilize the Shelbyville whiskey company under a court-appointed receiver,” the Moore Country Observer reported.

The property is part of the cognac business, which the company has decided to exit because it does not have the cash to bring the product to market.

October 1 In a filing in U.S. District Court, receiver Phillip G. Young Jr. said other assets could be sold, but the core brand was viable.

The company has a high value and can be reorganized as a going concern.

Young made several changes to the company during his tenure as receiver. The foreclosure came after Farm Credit Mid-America, Uncle Nearest’s primary lender, filed a lawsuit.

Young corrected this relationship and made other changes:

  • The lender agreed to offer 2.5 million. USD short-term financing to cover overdue bills and professional fees.

  • The 13-week budget shows that the company’s income is sufficient to cover its operating expenses.

  • The company dismissed 12 employees.

“While cash flow has been a ‘major challenge’ in the early weeks, shipments are resuming and interest from potential investors and buyers is growing,” the paper said.

Young hopes to turn around the company’s assets. That could include a formal Chapter 11 bankruptcy filing, but the closest uncle hasn’t done so yet.

Uncle Nearest’s history is related to Jack Daniel’s, but the companies are not officially affiliated. pixabay

Many of the company’s problems, according to Young, stem from poor record-keeping and mismanagement by the previous manager. The company still has major issues to overcome.

  • The brand is accused of default more than 108 million in loans and credit lines.

  • Lender “Farm Credit Mid-America” ​​2025 filed a federal lawsuit in late July seeking to remedy alleged violations, including increased collateral assessments (barrels used as collateral).

  • Among the charges: failure to meet required financial obligations, failure to provide required reports and allegedly overestimating the value of a barrel by $24 million.

  • A federal judge ordered the company classified administratorthis means that the control of its operations has been taken away from the founders.

  • The designated administrator (Phillip G. Young Jr.) has engaged turnaround consultants and legal counsel to assess the business and its outside assets for possible liquidation.

  • The administrator now has the right to initiate formal bankruptcy proceedings if necessary.
    Source: Black Enterprise

Young acknowledged in court that bankruptcy is a possible remedy, but he noted that a Chapter 11 bankruptcy filing will be in order to reorganize.

“The information administrator does not believe that liquidation of the company prior to sale (as part of the receivership or bankruptcy process) is necessary or in the best interests of this company,” he wrote in court documents.

An attorney for the brand’s previous owners, Fawn and Keith Weaver, also said in a previous court filing that the company was considering Chapter 11 bankruptcy. After the administration, those plans were changed or at least delayed.

Related: Florida tourism transportation leader files for Chapter 11 bankruptcy

This story was originally reported by TheStreet in 2025. on October 23, where it first appeared in the retail section. Add TheStreet as a preferred source by clicking here.

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