The sale of a Martha’s Vineyard home associated with beleaguered whiskey brand Uncle Nearest could be on the rocks as litigation around the company’s debt continues. 

Uncle Nearest, once a rising star in the spirits world, was hit with a lawsuit from its creditors last year, and then later was put into receivership as a Tennessee federal court attempts to work through the dispute. 

In June, the receiver gained approval from the court to sell the home along Edgartown-West Tisbury Road in Edgartown for $2.5 million to cover some of the debt. Fawn Weaver, the founder of Uncle Nearest, and her husband Keith objected to the sale and earlier this month asked the court to halt the process. 

With all motions and other legal filings flying back and forth, the original home buyer has dropped out, according to court documents, and a second potential buyer will not close on the property until the Weavers’ motion is resolved. 

“The Weavers’ requested stay would harm the receivership estate by continuing to impose monthly expenses for a non-income producing asset….Delaying the sale only prolongs those carrying costs to the prejudice of creditors which weighs in favor of selling the [Martha’s Vineyard property],” Justin Campbell, the attorney for the receiver, wrote in July 6 filing.

The home in the Codman Spring Road neighborhood was host to several promotional whiskey parties in 2023. The events riled neighbors and prompted several towns to consider regulations around commercial activities in residential areas.

Since then, Uncle Nearest’s lenders claimed the company owed them more than $100 million and defaulted on payments. The receiver wanted to offload the Vineyard house to cut down the debt. 

The Weavers, who were recently fired by the reciever, asked the court to pause the sale, pending a potential appeal.

In a July 1 motion, the family said the sale would be difficult to unwind if allowed, and not enough consideration has been given to the ownership of the items inside the house.

“It is a final disposition of a unique asset with brand, strategic, and enterprise value, and the sale would substantially prejudice Defendants before any judgment on liability or debt amount has been entered,” the Weavers’ attorney, Curtis Johnson, wrote.

The Weavers also contend that pausing the sale would not immediately hurt the creditors, as the court has ordered the proceeds to not be released while the rest of the lawsuit plays out. 

“[T]he property is not at risk of loss or diminution, therefore, there is no monetary loss by staying any action on this sale,” Mr. Johnson wrote. “Simply put, the only thing a stay would do is to maintain the status quo pending reconsideration or appellate review.” 

The receiver has asked the court to proceed with the sale, saying that the Weavers could have appealed the order allowing him to sell, but they didn’t in a timely fashion. 

The court has not yet weighed in on the motions and no hearings have been scheduled yet.