In 2014, Tim and Julie Kenney purchased Clay’s Ace Hardware, a mainstay of south Fort Collins since the original owners, Jim and Lisa Clay, started the store in 1998. Tim and Julie felt the entrepreneurial call, but did not necessarily want to start their own business, so they began looking for businesses to purchase. Their focus rested on a brand that was recognizable, and an existing business that had a culture built around service to the customers and community. They learned that Tim and Lisa Clay were considering selling their store located on Harmony Road in Fort Collins, however the Clays cared deeply about their employees and customers and only wanted to sell to someone with the same values. Tim appreciated this and said, “It’s the idea that people are coming to our store for more than an item.”
Tim began investigating the Ace Hardware franchise model and discovered it was a cooperative, meaning each store is locally owned, but they still have a national organization with one vote per store. The franchise is particular about the owners it selects, and he went through the process, discovering the support the model offered along the way. Outside of the support from the franchise, Tim made his way in to the SBDC for consulting on the purchase process. The purchase took about a year to complete.
A key recommendation from one of the SBDC consultants was that he simply work in the business for the first few months of the transition. “We were focused on continuing the path of success of the previous owners and made no changes for the first six months,” said Tim. The store is classified a supercenter based on sheer size, with 17,000 square feet of retail space and a team of 31 people. There are approximately 13 full time employees, and the core group of employees have been with the store between 5 to 13 years. By heeding this advice, the Kenney’s were able to make the ownership transition and maintained 100% employee retention. “It’s the same great service with the same great team,” Tim says proudly.
The store remains deeply rooted in the community and regularly hosts fundraisers in it parking lots for local high school clubs, sports teams and others. They strive to maintain a welcoming attitude and create a fun environment with these events, an element other stores struggle to emulate. There are over a dozen events each year at the store.
Tim is excited for the future of the store and the possibilities of expansion. As he has come to understand the history and culture of the store, he has faced challenges, but with the support of the Ace franchise and SBDC consultants the ownership transition has been a success.
