The Courier & Advertiser (Perth and Perthshire Edition)
Kenny’ s to sound out new investors
Kenny’s Music is launching a crowdfunding deal with the goal of becoming the largest pre-owned instrument retailer in the UK.
Kenny’s has its HQ in Dunfermline, four shops in Scotland and an expanding online offering.
Later this month it will launch an investment programme, giving customers the chance to become part-owners of the company.
Starting at £100, those who put money in will become shareholders, as well as receive exclusive discounts and deals.
Like many crowdfunding investment opportunities, there is an element of risk and those who do give money are advised they could lose it.
Kenny’s director Alex Martens, who purchased the chain in 2022, has hopes of increasing the firm’s value in the next five years.
Speaking with The Courier, Alex explained how Kenny’s plans on becoming “the home” of pre-owned instruments.
He said: “We took over the company in 2022, and I had previously worked for Kenny’s Music and, a long time before that, Sound Control.
“In that time we have grown massively, by around 39% to the last financial
llyear. And now, we are trying to keep moving forward. We want to become the largest preowned musical instrument retailer in the country.
“We looked into various funding options, like private investment, but we felt as a retailer crowdfunding really works. It puts our customers right at the heart of our business.
“Customers are the most important part of the business and if they are investors, even better.
“We want to build an army of Kenny’s Music super fans who will buy and sell from us, tell their friends about us.”
Those who take up the investment opportunity will be rewarded exclusive “perks discounts”.
These include discount vouchers, the chance to buy instruments at “cost” price and out-of-hours shopping experiences.
“Investors will have the same shares as we have. If we pay dividends, they will be paid dividends,” Alex explained.
“If we sell the company, they will benefit from the sale. And what we are aiming to do is make the company worth around five times its current value within five years.
“There is obviously an element of risk, the same as any experienced investor would have. On all our with and communications, we have ‘do not invest unless you are prepared to lose all of the money you invest’.”
As many retailers move the majority of their offerings online, Alex explained the aim for Kenny’s would be to have a “bricks and mortar” store.
“Musical instruments are different to a lot of other products. A lot of customers would rather physically get their hands on a guitar or keyboard,” he said.
“They want to listen to how it sounds and feels before buying.
“We do sell a lot online and around a third of our business is online. But we do believe bricks and mortar stores are essential, if you want to try something out properly.”