A SCOTTISH distillery has been acquired from administration saving the jobs of all 42 staff after its owner was placed into the hands of administrators.
St Andrews-based Eden Mill Distillery has been sold after Begbies Traynor were appointed joint administrators of St Andrews Brewers Limited on Tuesday, November 18, following a period of intense activity to restructure the business,
The brewer had significant debt resulting from the challenges of the global whisky sector.
After an accelerated marketing campaign in recent weeks, and efforts to secure a buyer for the business and its assets, Ruby Capital has acquired the business and assets of Eden Mill for an undisclosed sum, safeguarding the future of the business and protecting the jobs of all its employees.
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Eden Mill became Scotland's first combined distillery and brewery in 2014 when they started distilling Scotch whisky and gin in 2014.
Thomas McKay, managing partner of Begbies Traynor in Scotland, who ran the restructuring activity 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.”
Operations will continue as normal at the landmark distillery and visitor centre on the Eden Estuary.
The multimillion-pound facility, powered entirely by renewable energy, blends modern sustainability with Scotland’s rich distilling heritage and attracts visitors from across the globe.
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 Banks. "We’re excited to build on the quality and reputation of Eden Mill and take it to new heights."
The downturn in the global whisky market is due to a range of economic factors including changing consumer behaviours, rising operating costs and overheads, falling export sales and reduced consumer demand for alcohol in general.
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