DUANE SHERRILLEditor

Bankruptcy filing was short-lived for Nearest Green as a federal judge struck down their filing, saying they had no right to seek bankruptcy protection without permission of the receiver who was appointed to oversee the business.

The rejection of Nearest Green’s bankruptcy filing came just days after they had sought relief through the bankruptcy court.  The receiver, who was put over Nearest Green’s finances after their chief creditor, Farm Credit Mid-America sued them for what it was owed which amounted to over $100M, filed an expedited motion for sanctions against co-owner Fawn Weaver, asking she be fined up to $75,000 for her filing for bankruptcy outside without seeking court permission. They also claim she has taken to social media after being warned not to try the case in the press by the presiding judge.

They also asked that the bankruptcy filing by made null and void, which it was by the federal court last week. The Weavers have filed an appeal of the court’s action, striking down their bankruptcy claim, asking the court to reconsider.

Meanwhile, as things move quickly in federal court in the back-and-forth between the Weavers and their receiver, a new lawsuit has been launched, this one by a hiring company who claims they were stiffed by Nearest Green when it came to getting paid.

Randstad has told the court that they have suffered over $91,000 in damages by the non-payment by Nearest for services rendered.

The suit comes days after Nearest sued its creditor, Farm Credit Mid-America  in the Supreme Court of New York, alleging the leader mounted a smear campaign against the brand by knowingly circulating false accusations including claims of missing inventory, financial misconduct, negative cash flow and insolvency.