The receiver of Uncle Nearest says the company is insolvent.

Phillip G. Young Jr. is the court-appointed receiver of the whiskey brand Uncle Nearest, owned by Fawn Weaver and her husband, Keith. The receiver was appointed after the company defaulted on more than $108 million in loans, as AFROTECH™ previously reported. Young now oversees assets such as Uncle Nearest’s distillery in Shelbyville, along with its real estate holdings, intellectual property, affiliated ventures, and related entities.

Young said that upon his appointment as receiver, he inherited unfiled federal income tax returns dating back to 2018, along with unreliable financial records and books that could not be trusted for accurate reporting, according to the Moore County Observer.

Young informed a federal court on Friday, April 10, that Uncle Nearest is insolvent and at risk of being forced to close within 30 days without ongoing lender support, the Moore County Observer reports. In the latest quarterly report for the whiskey brand ending on March 29, there was nearly $5 million in operating collections, $3.46 million in operating disbursements, and $1.66 million in receivership professional fees, per the outlet. All in all, net cash flow was estimated to be $119,000.

Young detailed that the company is remaining in business through $3.8 million in cash infusions from lender Farm Credit Mid-America and other factors that include large operating cuts. It is also noted that the company is “not paying secured, long-term, or pre-receivership debt,” the Moore County Observer reports. If that aforementioned debt had been paid, Young said Uncle Nearest “would not be capable of normal operations.”

Young also claims that the company does still have value. However, it’s only contingent upon whether the receivership can be upheld for a longer period to ensure operations can be stabilized, can liquidate non-essential assets, and complete a going-concern sale, where a business must sell all its assets, liabilities, and properties, according to Law Insider.

As AFROTECH™ previously reported, Young listed the business’s Martha’s Vineyard property for sale in March 2026. In the latest update, Young says he has identified a buyer for the property and is currently engaging in conversations with potential buyers for the company’s assets in Cognac, France. 

Now, Young said he must sell the company’s assets quickly by the end of the second quarter this year, per the Moore County Observer.

Young also shared that Uncle Nearest’s workforce was reduced by 38%, including management roles. The receivership team has scaled its collection work, reduced spending, and reduced gross accounts receivable by $803,029 from the end of 2025 to March 2026.

Young hopes that the receivership will remain intact long enough for the company’s sale to be completed.