Scotland's Eden Mill Distillery has been acquired by investment fund Ruby Capital after entering administration earlier this week.

Ruby Capital, led by Scottish businessman Tony Banks, has acquired assets including a distillery near St Andrews, as well as a clutch of gin and whisky brands, for an undisclosed sum.

According to administrators Begbies Traynor, Eden Mill had “significant debt resulting from the challenges of the global whisky sector".

Thomas McKay, managing partner of 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."

Begbies Traynor said the deal would "save" 42 jobs at Eden Mill.

Private-equity firm Inverleith bought majority control of Eden Mill in 2022. The company was set up in 2012 by Tony Kelly and Paul Miller.

In a statement, Ruby Capital said it plans to "invest in new products, expand the brand and position Eden Mill as one of Scotland’s leading international spirits".

Banks added: "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."

The private-equity firm declined to comment on Eden Mill's recent trading performance.