Impressed by the performance, Petherick arranged for Minogue to record the former song, re-titled as "Locomotion", with producer Kaj Dahlstrom, who invested $10,000 to record it. Petherick submitted the demo track to many record labels before reaching out to Michael Gudinski, head of Mushroom Records. Gudinski was reluctant at first, calling the demo "a bit of a one-hit wonder". During a trip to London several months after receiving the demo track, Gudinski decided to sign Minogue because of her popularity from "Neighbours". She signed with the label in early 1987. The decision was made when not many established actors in television chose to make a record. Critics and employees of Mushroom Records gave polarised opinions; many thought it would be the end of the company and dubbed Minogue as "The Singing Budgie."