The Kent-based company will be auctioning off all remaining stock in its warehouses, before selling its factory and possibly relocating offices.
Although the company will no longer rebuild and stock secondhand kit, it will continue to work with printers to help them source the right equipment, said owner Martin Kennedy.
The firm has historically specialised in rebuilding Komori equipment, but the new machine finder part of the business will now focus on all brands of litho sheetfed printing kit and allied equipment, he reported.
“We will go to the customer and ask what they are looking to do and work with them, whether they want a Heidelberg, Roland or Mitsubishi printer. I have 55 years of experience in the industry so we’re confident in finding the right solution for people,” he said. “We’re interested in supplying post-press equipment too.”
The company will retain all full- and part-time staff, said Kennedy. He reported that the aim was to consolidate and even reduce the company’s current £600,000 turnover to boost profitability from £50,000 to £100,000 over the next two years.
“We’ll hopefully increase profitability as holding stock is currently a drain on the business,” said Kennedy. “Going forwards we’ll have a very low cost base because we won’t need a big premises.”
He added that Orion, the spare parts division of the company, would perhaps increase its profitability thanks to the opportunity now to channel “more time and activity” here.
Kennedy puts the need to reformulate the Kenmart business model down to new, lower-cost printing kit being available today that lasts longer without needing reconditioning, and to lack of finance for secondhand kit.
“Machines are so sophisticated now they don’t need to be rebuilt in the same way, and now new machines are being sold into people who used to be my customers,” he said.
He added: “We hit a brick wall in 2004 and 2005 when our market was diminishing rapidly because used machine people were selling at heavily discounted prices.”
The shift in the Kenmart model will also see Kennedy scale back his involvement in the business slightly, although he stressed he will still be involved. Kennedy founded the business in 1977.
The stock auction will take place online from the end of the month.
