Uncle Nearest Whiskey Faces Chapter 11 Bankruptcy After Historic 159-Year Legacy

One of America's most historically significant whiskey brands is facing potential bankruptcy, marking a dramatic turn for a company that was founded to honor a formerly enslaved master distiller who helped shape the bourbon industry as we know it today.

A Brand Rooted in American History

Uncle Nearest Premium Whiskey, launched in 2017, tells the remarkable story of Nathan "Nearest" Green, a formerly enslaved man who became a master distiller and is credited with teaching Jack Daniel himself the art of distillation. After emancipation, Green became Jack Daniel's first "head stiller" or master distiller, though his contributions were largely forgotten until entrepreneur Fawn Weaver researched and documented his legacy.

The brand has been celebrated not just for its premium spirits, but for reclaiming an important piece of American history that had been overlooked for over a century. In 2020, Uncle Nearest and Jack Daniel's parent company Brown-Forman even collaborated on the Nearest & Jack Advancement Initiative to promote diversity in the spirits industry.

Financial Troubles Mount

According to court documents reviewed by multiple outlets, Uncle Nearest Inc. now faces severe financial challenges. The company is preparing to sell off non-core assets, including French vineyards, a Cognac château, and other real estate holdings as part of efforts to stabilize the business under court-appointed receivership.

The troubles began when Farm Credit Mid-America, the company's senior lender, filed a lawsuit alleging that Uncle Nearest had defaulted on more than $108 million in loans and lines of credit. The agricultural lending cooperative accused the brand of failing to maintain required financial covenants, provide necessary reports, and allegedly overstating barrel inventory values by $24 million.

In late July 2025, a federal judge ordered the company into receivership, appointing Phillip G. Young Jr. to take control of operations away from its founders. This marks a significant shift for a company that had been one of the fastest-growing whiskey brands in the United States, according to industry reports.

Receiver's Assessment Offers Hope

Despite the serious financial difficulties, Young's October 1 report to the U.S. District Court suggested that the core brand remains viable. "The company has significant value and can be reorganized as a going concern," Young stated in court filings.

Since taking over, the receiver has implemented several changes:

• Negotiated $2.5 million in short-term funding from the lender to cover overdue bills and professional feesImplemented a 13-week budget showing that revenues are sufficient to cover operating expensesMade the difficult decision to lay off 12 employeesAbandoned plans to bring a cognac business to market due to insufficient capital

Young acknowledged in court documents that while a Chapter 11 bankruptcy filing remains a possibility, he does not believe "that a fire sale liquidation of the company is necessary or in the best interest of this company." The receiver noted that interest from potential investors and buyers is growing as shipments resume.

Part of a Broader Industry Struggle

Uncle Nearest's financial woes reflect broader challenges facing the spirits and craft beverage industries. The Distilled Spirits Council reported that U.S. spirits sales declined 1.1% in 2024, totaling $37.2 billion, even as the sector maintained its market share lead at 42.2%.

"Consumers were contending with some of the highest prices and interest rates in decades, which put a strain on their wallets and forced many to reduce spending on little luxuries like distilled spirits," explained Distilled Spirits Council CEO Chris Swonger in the organization's annual economic report.

The whiskey and wine industries have seen several notable bankruptcies in 2025:

• Stoli Group USA and Kentucky Owl Bourbon filed in November 2024, citing a cyberattack, brand disputes, and weaker spirits demand, with liabilities between $50-100 million
• Vintage Wine Estates filed in July 2024 with approximately $400 million in debt, subsequently selling 30+ brands and 11 wineries
• House Spirits Distillery (makers of Westward Whiskey) filed in April 2025, affected by the spirits downturn and overcapacity
• Devils River Distillery filed in May 2025 with liabilities between $1-10 million

Even the barrel-making industry has felt the impact. Staggemeyer Stave Company, a 50-year-old Minnesota-based producer of white oak barrel staves for the wine and whiskey industry, filed for Chapter 11 bankruptcy in October 2025 after an involuntary Chapter 7 petition from Decorah Bank & Trust Company. The bank claimed the company was "generally not paying its debts as they become due."

Management Issues and Path Forward

Young's reports suggested that many of Uncle Nearest's problems stemmed from poor recordkeeping and mismanagement by previous executives. Cash flow emerged as a major challenge in the first weeks of receivership, though the situation has since stabilized.

In response to bankruptcy speculation, a Saks Global spokesperson—representing Uncle Nearest's parent company—issued a statement emphasizing that "a restructuring is not being contemplated." The company noted it has "sufficient liquidity after raising $600 million in financing this summer from existing bondholders," and expects "performance to improve through the holiday season and into 2026" as inventory levels normalize and integration synergies are realized.

An attorney for previous owners Fawn and Keith Weaver indicated in earlier court filings that the company had considered a Chapter 11 bankruptcy filing before the receiver was appointed, though those plans were put on hold.

What This Means for Consumers and the Industry

For now, Uncle Nearest products remain available in stores and restaurants, and the brand continues operations under receivership. The company's decision to focus on its core whiskey business by divesting European wine and cognac assets suggests a strategic refocusing on what made the brand successful in the first place.

The case highlights the challenges facing premium spirits brands in an era of economic uncertainty and changing consumer habits. Research from Gallup shows that 62% of adults under age 35 now drink alcohol, down from 72% two decades ago, while drinking has increased among adults 55 and older. This demographic shift requires brands to adapt their marketing and product strategies.

Industry observers will be watching closely to see whether Uncle Nearest can successfully reorganize and continue its mission of honoring Nathan Green's legacy while building a sustainable business. The brand's story represents more than just whiskey—it's about reclaiming forgotten history and providing representation in an industry that has often overlooked the contributions of Black Americans to American spirits.

Looking Ahead

As Uncle Nearest works through its financial challenges, the spirits industry faces a critical moment. The brand's potential restructuring could serve as a template for other struggling premium spirits companies navigating similar economic headwinds.

Whether through asset sales, new investment, or a formal Chapter 11 reorganization, the goal remains clear: preserve a brand that honors an important piece of American history while building a financially sustainable business. For Uncle Nearest, the next few months will be crucial in determining whether this 159-year-old legacy can continue into its next chapter.