The lawsuit against Uncle Nearest is moving toward a possible bankruptcy.
Court filings show that Phillip G. Young Jr. has hired turnaround firm Newpoint Advisors Corporation to assess the business’s financial health. Young, who was appointed as receiver in August, now has the authority to initiate bankruptcy proceedings if necessary.
Young’s firm has hired consultants to assess the company’s outside assets for possible liquidation. Thoroughbred Spirits Group was retained as an operational consultant, and Belcher, Sykes & Harrington will serve as alcoholic beverage counsel.
Farm Credit is challenging Weaver’s purchase of a cognac distillery in France and a home in Martha’s Vineyard, calling the move misappropriation of funds. To manage those assets, Young has brought on a French law firm to evaluate or liquidate the estate’s assets in France and another to handle properties in Massachusetts.
The Weavers have responded to Farm Credit, claiming that a former executive defrauded the company during his tenure. The case continues to make its way through the Tennessee Eastern District Court.
There’s a lot of speculation about the downturn of the $9 billion industry. The changing tastes of Gen Z and the rising tariffs on imports and exports have drastically changed the spirits landscape.
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Source: Black Enterprise
