Uncle Nearest, a popular Black-owned brand in the competitive American whiskey space, found itself in headlines due to widely reported financial concerns. Uncle Nearest’s CEO, founders, and stakeholders joined forces to sue Farm Credit Mid-America over an alleged smear campaign that was meant to discredit the brand.
As announced in a prepared press release, Uncle Nearest, its CEO, Fawn Weaver, and the brand’s largest shareholder filed suit against Farm Credit, stating that the lender deliberately enacted a campaign to smear the company. Weaver’s company says that Farm Credit levied false claims of missing inventory, misconduct on the financial side, negative cash flow, and insolvency.
“The accusations circulated about us were not only false. The bank knew they were false when they made them, and they knew those accusations would strike directly at the credibility that allowed this brand to grow against all odds in this industry,” said Uncle Nearest CEO Fawn Weaver.
Weaver and her side say that Farm Credit was attempting to shield its own mishandling and protect itself from deeper examination over the administration of funds. Farm Credit lent $102 million in a credit lending facility, only later to allegedly put forth reports of the whiskey company’s financial state and product obligations.
“False accusations can travel quickly, especially when they involve the founders of a nationally recognized brand,” said James Williams, chief litigator at Chehardy Sherman Williams, who is leading this litigation with James L. Walker, Jr. as New York counsel. “But when accusations are contradicted by the very records already in the accuser’s possession, there must be accountability,” Williams added.
In addition to the lawsuit, Uncle Nearest is no longer in receivership after a Chapter 11 filing. As the company reorganizes its holdings and inventory, operations at the popular distillery will continue as normal.
“Uncle Nearest did not become the seven-time most-awarded bourbon in the world by accident,” said Victoria Eady Butler, fifth-generation descendant of Nearest Green and four-time Master Blender of the Year. “This brand honors the legacy of my great-great-grandfather, the first known African American master distiller, the teacher and mentor to Jack Daniel, and the only known master distiller of Distillery No. 7. In 2017, we set out to ensure his name would be spoken worldwide in the same vein as Jack Daniel, Jim Beam, and Johnnie Walker. No obstacle placed in our path will prevent that.”
A response from Farm Credit Mid-America has yet to publicly respond.
Learn more about Uncle Nearest here.
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Photo: Getty
