Historic whiskey brand Uncle Nearest may file for Chapter 11 bankruptcy again after lawsuit, receivership

Uncle Nearest has once again met with an economic roadblock. According to The Street, the 159-year-old whiskey brand could soon declare bankruptcy and file for Chapter 11. This comes after the brand headed into receivership in August this year.

The company is best known for its history and legacy, dating back to the 1850s. This is the second time in 2025 when Uncle Nearest will be filing for bankruptcy.

The first request for Chapter 11 bankruptcy was filed in March, as per another report by The Street. The company held a decline in demand, increased cost of operation, and inflation responsible for its economic loss.

Uncle Nearest’s 159-year-old legacy

The brand traces its roots to one man, Nathan ‘Nearest’ Green, also known as a teacher to Jasper Newton Daniel, who created Jack Daniel’s whiskey, according to CBS News. Nathan was reportedly a former slave, who later went on to become a master distiller.

Uncle Nearest was created and launched in 2017 as a tribute to Nathan Green.

An IWSR report also mentioned Uncle Nearest as the fastest growing whiskey brand in the US.

Uncle Nearest’s financial woes

The company is not having a favorable financial time and could take up the step of filing for Chapter 11 bankruptcy. As per an IBT report, the unpleasant times began when Farm Credit Mid-America launched a lawsuit against the brand. They alleged a loan and credit default of over $108 million.

Following the legal suit, the court granted receivership motion and appointed Phillip G Young Jr to manage company assets at Uncle Nearest. Meanwhile, the operational roles stayed with the employees of the company only. Fawn Weaver again acted in October 2025. It mentioned that Uncle Nearest’s move to purchase a 2023 Martha’s Vineyard property was merely a tactic to sway the judge.

The company has now opted to file for Chapter 11 bankruptcy and plans to sell its assets in order to stabilise its economy. While there has been no official announcement for the same, the receiver could push for the decision if it suits them.

Meanwhile, Young Jr in his October 1 report filed in the US court stated that while the company may have to sell out a few assets, the core brand remains viable.

FAQs

Why is Uncle Nearest facing bankruptcy?

The brand is struggling with declining demand, high costs, and a $108 million loan default lawsuit.

Who filed the lawsuit against Uncle Nearest?

Farm Credit Mid-America sued the company for alleged credit and loan defaults.

What happened after the lawsuit?

A court placed the company in receivership, appointing Phillip G. Young Jr. to oversee its assets.

Who founded Uncle Nearest?

The brand honors Nathan “Nearest” Green, a former slave and mentor to Jack Daniel, and was launched in 2017.