Black excellence. Uncle Nearest brand hits 100million in sales and the owners purchase a bank in Tennessee!

[AceDeuceTrey]

I had to look up who it was. Looks like some Asian guy. Michael Senzaki. He tanked them

I’m surprised (but with this being the Coli, not really) you’re the first one to mention this.

Everybody jumping out the window to critique the black founder for being “all up in the videos”, but missing all the key parts.

Luckily, I find this interesting for a lot of reasons, so I have to break this down.

1. The CFO (an Asian man) was the one committing major financial fraud

He probably thought he could get over on this up and coming black business for his own personal gains. He obviously had no shame in screwing this black business out of their money and more importantly, their reputation. He never would have been bold enough to do this at a white or Asian institution amongst his “peers”.

A CFO is typically the 2nd or 3rd highest ranked and important position at any company. Can’t trust that role with anybody, especially someone who probably thinks you’re inferior to them. When looking him up, also noticed that a lot of execs there are also not black unfortunately.

2. The lender fukked up in a major way. So much so, that everyone involved in with the loans should be fired.

As a former banker, there’s no way you materially increase the credit limit on revolving loans or issue new loans without confirming the value of the collateral that’s being put up.

Any lender is sending an auditor or appraiser on site to do their due diligence before signing off on new money. And even then, they are only lending up to 50-80% of the collateral value. A $21M shortfall on the collateral is some amateur shyt. They are some dumb fukks who shouldn’t be saved from their own negligence.

3. The founders are not losing their company nor is the company going out of business (at least not yet)

The judge ruled in favor of receivership, which basically means someone is coming in to run the company to ensure the bank gets paid.

This (and the loan amounts) tells me that the business is actually making bank but is managed very poorly. By all accounts, it seems they are doing very well with sales, branding and marketing but their financial operations are obviously a mess.

If they were not making beaucoup money, they would be liquidated so the bank could salvage some of the debt owed to them.

4. While the CEO could stand to be more locked in on the day to day operations so the people she hired don’t commit fraud, the irony is that her visibility and talents have obviously helped the company establish itself and fueled their fast success.

Some of y’all are way too harsh on this woman and her company who, while not perfect, are major success stories and are the epitome of Black Excellence and Black History. There are a lot of lessons for her to learn if they can get through this.

They have done the hard part (building a brand story, great product, acquiring customers), just now need to do the boring shyt (hire right, establish a professional culture, set up governance and fiscal controls)

 

[StackorStarve]

I’m surprised (but with this being the Coli, not really) you’re the first one to mention this.

Everybody jumping out the window to critique the black founder for being “all up in the videos”, but missing all the key parts.

Luckily, I find this interesting for a lot of reasons, so I have to break this down.

1. The CFO (an Asian man) was the one committing major financial fraud

He probably thought he could get over on this up and coming black business for his own personal gains. He obviously had no shame in screwing this black business out of their money and more importantly, their reputation. He never would have been bold enough to do this at a white or Asian institution amongst his “peers”.

A CFO is typically the 2nd or 3rd highest ranked and important position at any company. Can’t trust that role with anybody, especially someone who probably thinks you’re inferior to them. When looking him up, also noticed that a lot of execs there are also not black unfortunately.

2. The lender fukked up in a major way. So much so, that everyone involved in with the loans should be fired.

As a former banker, there’s no way you materially increase the credit limit on revolving loans or issue new loans without confirming the value of the collateral that’s being put up.

Any lender is sending an auditor or appraiser on site to do their due diligence before signing off on new money. And even then, they are only lending up to 50-80% of the collateral value. A $21M shortfall on the collateral is some amateur shyt. They are some dumb fukks who shouldn’t be saved from their own negligence.

3. The founders are not losing their company nor is the company going out of business (at least not yet)

The judge ruled in favor of receivership, which basically means someone is coming in to run the company to ensure the bank gets paid.

This (and the loan amounts) tells me that the business is actually making bank but is managed very poorly. By all accounts, it seems they are doing very well with sales, branding and marketing but their financial operations are obviously a mess.

If they were not making beaucoup money, they would be liquidated so the bank could salvage some of the debt owed to them.

4. While the CEO could stand to be more locked in on the day to day operations so the people she hired don’t commit fraud, the irony is that her visibility and talents have obviously helped the company establish itself and fueled their fast success.

Some of y’all are way too harsh on this woman and her company who, while not perfect, are major success stories and are the epitome of Black Excellence and Black History. There are a lot of lessons for her to learn if they can get through this.

They have done the hard part (building a brand story, great product, acquiring customers), just now need to do the boring shyt (hire right, establish a professional culture, set up governance and fiscal controls)

Agree on all the CFO points. I’m not in banking but I’m a program manager for a government contracting company so I’m always interested in the details. The bolded stuck out because we go through internal and external audits by the DCAA at least once if not more every year. Do you think this could have been a predatory lending situation? I ask because of how quickly they lended and kept increasing the loan within a short time frame without doing their due diligence to verify the companies supply of barrels. We won’t contract with a company past a certain amount unless they show proof of their accounting system.

 

[BuckFilly]

damn, this is my drink of choice

 

[IIVI]

So it sounds like:

Market/business is tanking/not doing great in this economy.

The lenders “margin called” and found their CFO smudged the numbers to borrow more money?

I’m guessing if business was flying the lenders would not have had a problem.

 

[desjardins]

Gen Z doesn't party nor fukk hoes, they pop pills and vape

Julioooooooooooooo *puts bottle on head*
Only liquor young people care about is whatever tequila they've been told to like that year

 

[summwunn]

Man this cutwater trend is so insane, they've been out for a while and ppl losing their damn minds

..... the name might change but the game stays the same . . .. .

 

[ORDER_66]

So any updates on this story?!!?

 

[summwunn]

Julioooooooooooooo *puts bottle on head*
Only liquor young people care about is whatever tequila they've been told to like that year

...... currently they wanna know more about Reposado . . . . . . but only because they were told by AI via social-media that it hits harder. . .. . meanwhile half these brands add caramel-coloring additives to make that shyt look like it been aged in barrels . .. . but in reality . .. . that shyt been distilled in a labratory-lookin space . .. . probably right next to the room they makin them THC cans at . . . . .. all planned in-advance . .. . . dilute the testosterone of the biggest threat to white Supremacy . . . . .. . . but yeah . . . .. . . as long as the bartender smiles .. . . . the party just beginning . . .. ..

 

[DrBanneker]

So any updates on this story?!!?

At the receivership hearing, Nearest Green attorney Rocklan King affirmed the company had defaulted on their loans. Apparently, there had even been discussions about filing for bankruptcy. However, he stated that the Weavers were fully committed to repaying their loans as they didn’t want to lose control of the brand. Keith Weaver stated at the hearing that losing Fawn as the face of the brand would be devastating.


Not at the hearing, Fawn has been on social media trying to sell stock to save the company, asking supporters to “clear the shelves.”


The Lexington Herald reported that “U.S. District Judge Charles E. Atchley Jr. appointed Nashville Phillip G. Young, who was proposed by Uncle Nearest founder Fawn Weaver and her husband, Keith, over the receivership because of his extensive background in restructuring and bankruptcy experience, as well as the Weavers’ assertions that Young wanted to collaborate with them to preserve customer goodwill.”


The receiver must work to preserve the assets owned by the Nearest Green Distillery. While the Weavers are allowed to continue to market the brand, they must turn over all records and financials from July 2022 to the present, and get permission before moving forward with their plans. The receiver will produce the first quarterly report concerning the status of the business on October 1, 2025.

 

[DrBanneker]

I’m surprised (but with this being the Coli, not really) you’re the first one to mention this.

Everybody jumping out the window to critique the black founder for being “all up in the videos”, but missing all the key parts.

Luckily, I find this interesting for a lot of reasons, so I have to break this down.

1. The CFO (an Asian man) was the one committing major financial fraud

He probably thought he could get over on this up and coming black business for his own personal gains. He obviously had no shame in screwing this black business out of their money and more importantly, their reputation. He never would have been bold enough to do this at a white or Asian institution amongst his “peers”.

A CFO is typically the 2nd or 3rd highest ranked and important position at any company. Can’t trust that role with anybody, especially someone who probably thinks you’re inferior to them. When looking him up, also noticed that a lot of execs there are also not black unfortunately.

2. The lender fukked up in a major way. So much so, that everyone involved in with the loans should be fired.

As a former banker, there’s no way you materially increase the credit limit on revolving loans or issue new loans without confirming the value of the collateral that’s being put up.

Any lender is sending an auditor or appraiser on site to do their due diligence before signing off on new money. And even then, they are only lending up to 50-80% of the collateral value. A $21M shortfall on the collateral is some amateur shyt. They are some dumb fukks who shouldn’t be saved from their own negligence.

3. The founders are not losing their company nor is the company going out of business (at least not yet)

The judge ruled in favor of receivership, which basically means someone is coming in to run the company to ensure the bank gets paid.

This (and the loan amounts) tells me that the business is actually making bank but is managed very poorly. By all accounts, it seems they are doing very well with sales, branding and marketing but their financial operations are obviously a mess.

If they were not making beaucoup money, they would be liquidated so the bank could salvage some of the debt owed to them.

4. While the CEO could stand to be more locked in on the day to day operations so the people she hired don’t commit fraud, the irony is that her visibility and talents have obviously helped the company establish itself and fueled their fast success.

Some of y’all are way too harsh on this woman and her company who, while not perfect, are major success stories and are the epitome of Black Excellence and Black History. There are a lot of lessons for her to learn if they can get through this.

They have done the hard part (building a brand story, great product, acquiring customers), just now need to do the boring shyt (hire right, establish a professional culture, set up governance and fiscal controls)

I am hopeful you are right but as much as I wish we could 100% blame it on Senzaki being shady, some things still raise questions. As you stated, why was an outside auditor not required to sign off on the balance sheet and if they did, who were they and were they in cahoots with Senzaki?

Also, the fraud he committed was misrepresentation and unless he got his hand stuck in the till or got illegitimate bonuses, it will be hard to bring him to account. He will just turn around like many CFOs do and claim he was 'pressured' to get loans by the owners for their expansion plans. Granted he has fiduciary liability but not sure if it is court worthy.

The article the quote above is from (Uncle Nearest Whiskey Under Federal Receivership) mentions the liquor market downturn as a likely catalyst. I feel they were probably going gangbusters when their credit was extended but maybe on thin margins due to marketing expense? If revenue fell then maybe their interest coverage ratio dropped fast.

Also, the loan was issued in July 2022 and in 2023 they bought the French cognac brand Domaine Saint Martin. I assume this loan played a part and if due diligence was short (or Domaine cooked their books to look good pre-acqusition) that may have screwed them heavily.

Also, if they were stocking out in the field, pulling more whiskey in with less aging could substantially reduce the cask inventory without anyone being shady. But again, we will find out in the first financials in a few weeks.

 

[Adeptus Astartes]

Uncle Nearest Is One Step Closer To Bankruptcy

Phillip G. Young Jr., Uncle Nearest receiver has hired outside counsel to assess the company's assets for possible liquidation.

www.blackenterprise.com

Bankruptcy case moving forward. They've hired a consultant to assess the value of their international holdings, including a congac distillery in France.

Yeah they’re fukked. It’s a breach of contract. It’s not the lenders problem that their CFO cooked the books. They’re going to have to eat that and hope they have enough assets available to sell to avoid having the business liquidated.

 

[Savvir]

Also, the fraud he committed was misrepresentation and unless he got his hand stuck in the till or got illegitimate bonuses, it will be hard to bring him to account. He will just turn around like many CFOs do and claim he was 'pressured' to get loans by the owners for their expansion plans. Granted he has fiduciary liability but not sure if it is court worthy.

The Lexington Herald reported that “U.S. District Judge Charles E. Atchley Jr. appointed Nashville Phillip G. Young, who was proposed by Uncle Nearest founder Fawn Weaver and her husband, Keith, over the receivership because of his extensive background in restructuring and bankruptcy experience, as well as the Weavers’ assertions that Young wanted to collaborate with them to preserve customer goodwill.”

They had too much experience to make the mistakes they claim they made....

They were definitely in on it... the asian dude wasn't doing this alone

 

[StackorStarve]

Uncle Nearest Is One Step Closer To Bankruptcy

Phillip G. Young Jr., Uncle Nearest receiver has hired outside counsel to assess the company's assets for possible liquidation.

www.blackenterprise.com

Bankruptcy case moving forward. They've hired a consultant to assess the value of their international holdings, including a congac distillery in France.

Hope they make it through somehow. I wonder how long the evaluation will take to figure out how much all of their assets are worth and how much of it can they afford to lose and still have a business to move forward with.

 

[AceDeuceTrey]

Hopefully the outside assets can repay their debt and they can re-start clean.

They were tryna grow too fast with the French cognac distillery play

 

[Schadenfreude]

Hopefully she defrauded the bank and still has the money hidden for later pivot. Wont be shedding any tears about a liquor company dying.

That... Would potentially involve jail time wouldn't it?