Eden Mill: 42 jobs saved after Scottish distillery with panoramic rooftop bar bought from administration
The distillery has a rooftop bar with panoramic views towards St Andrews
A distillery that just opened on a new site in Fife has been acquired from administration, saving 42 jobs.
St Andrews-based Eden Mill Distillery has been bought by Ruby Capital for an undisclosed sum, with the deal credited for safeguarding the future of the business and protecting the jobs of all its employees.
The purchase comes after the distillery’s owner, St Andrews Brewers Limited, was placed into the hands of administrators earlier this week.
Kenny Craig and Kevin Mapstone, from Begbies Traynor, had been appointed joint administrators of St Andrews Brewers Limited on Tuesday following a period of intense activity to restructure the business.
The distillery had significant debt, which was blamed on the challenges of the global whisky sector.
The business had recently opened a multi-million-pound brand new distillery in Guardbridge - three miles north-west of St Andrews - that had been billed as a “world-class destination” for both local and international visitors.
The venue boasts a top floor cocktail bar with views across the water towards the St Andrews skyline.
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.
“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.”
Ruby Capital is led by entrepreneur Tony Banks who said of the deal: “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.”
Operations will continue as normal at the landmark distillery and visitor centre on the Eden Estuary.
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.”
Begbies Traynor has handled the restructure of a number of Scottish distilleries and spirit brands this year, as a combination of factors impact the viability of whisky businesses after the Covid boom in the sector.
The downturn in the global whisky market has been put down to economic factors including changing consumer behaviours, rising operating costs and overheads, falling export sales, and reduced consumer demand for alcohol in general.
The announcement on Eden Mill comes within days of Diageo stopping production at Roseisle Maltings until next summer due to a decline in demand. It also comes two months after the Scotch Whisky Association reported that more than 1,000 direct Scotch industry jobs had been lost since the previous UK Budget - 2.7 per cent of all those directly employed by the sector.
The industry is calling for the UK government to freeze spirits duty to prevent further job cuts and to support business sustainability.
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