Eden Mill Distillery near St Andrews has been acquired from administration, saving the jobs of all 42 staff.
Kenny Craig and Kevin Mapstone of Begbies Traynor were appointed joint administrators of the distillery’s owner, St Andrews Brewers on Tuesday.
Their appointment followed a period of intense activity to restructure the business, which had significant debt resulting from the challenges of the global whisky sector. Only last month it announced the opening of its visitor centre.
After an accelerated marketing campaign in recent weeks, and efforts to secure a buyer for the business and its assets, Dundee-based investment company Ruby Capital, led by entrepreneur Tony Banks, has acquired the business and assets of Eden Mill for an undisclosed sum.
Thomas McKay, managing partner at Begbies Traynor in Scotland, said: “The whisky sector as a whole continues to have a number of challenges at this time, largely as a result of the ongoing recession in the global whisky market.
“Eden Mill experienced a drop in sales and delays in the opening of its flagship visitor centre in St Andrews, which took around 12 months longer than expected to open its doors, creating cash flow difficulties for the business.
“With 42 jobs at risk, an accelerated sale took place to preserve value in the business and assets and to restructure the core business.
“The Eden Mill brands and assets have now been sold to the new owners and all employee jobs have been saved as part of the restructure.”
He added: “Thank you to St Andrews University, the landlords of the business, for their assistance and support during this restructure.
“We hope people will continue to visit the distillery, buy its products, and support it going forward, as Eden Mill now continues to trade under a new structure and journey into the future with new investment and secure foundations.”
Begbies Traynor said the downturn in the global whisky market is being driven by changing consumer behaviours, rising operating costs, falling export sales and reduced demand for alcohol in general.
Mr Banks commented: “I’m delighted that Eden Mill will continue to thrive as a world-class destination for visitors and a proud ambassador of Scottish craftsmanship.
“We believe strongly that a brand as iconic as Eden Mill should not be allowed to fail. It’s well-loved, high-profile, and we’re ready to grow it even further. This investment marks the beginning of an exciting new chapter.”
Ian McDougall, Interim chief executive of Eden Mill, added: “We remain committed to celebrating St Andrews’ proud distilling tradition and delivering exceptional gin, whisky, and visitor experiences.
“We’re delighted Ruby Capital has stepped in to secure our future, and there will be no
immediate changes for employees, customers, or suppliers.”
Looking ahead, Ruby Capital plans to invest in new products, expand the brand, and position Eden Mill as one of Scotland’s leading international spirits.
“Its location next to the home of golf makes it perfectly placed to serve the global tourism market,” said Mr Banks. “We’re excited to build on the quality and reputation of Eden Mill and take it to new heights.”
Eden Mill distillery, established in 2012, was the first distillery to make spirits in the St Andrews area in more than 150 years.
Mr Banks fought with the Paras in the Falklands War and later founded Balhousie Care Group which he later exited. He appeared in the TV show Secret Millionaire.
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