Albert Gubay, KC*SG (9 April 1928 – 5 January 2016) was a Welsh businessman and philanthropist, who made his fortune with the Kwik Save retail chain, building it further on investments, mainly in property development. According to Forbes, in 2006 Gubay had an estimated fortune of approximately £500 million ($1.1 billion), making him the 698th richest person in the world.[1]
Albert Gubay | |
|---|---|
| Born | 9 April 1928 Rhyl, Flintshire, Wales |
| Died | 5 January 2016 (aged 87) |
| Occupation | Businessman |
| Years active | 1959–2016 |
| Children | 2 |
Early life
editGubay was born on 9 April 1928 in Rhyl,[2] to an Iraqi Jewish father,[3] and an Irish Roman Catholic mother, Mary Clarke.[4] Gubay began his business career in North Wales selling non-sugar sweets during post-World War II confectionery rationing. When rationing came to an end in the mid-1950s, the confectionery business ran into difficulties and Gubay moved into retailing via market stalls.[5]
Career
editKwik Save
editGubay founded Value Foods on 11 May 1959 in Prestatyn, and rented its first retail shop in Rhyl in July 1959. His aggressive price cutting resulted in some manufacturers refusing to supply him.[6]
In 1964 Gubay visited the United States with fellow director Ken Nicholson, and learnt about the "baby shark" method of retailing. Combined with ideas gained from West German retailer Aldi, the business model was based on buying goods on favourable (net 60 or 90) payment terms, distributing and selling them at or below cost before the payment fell due, and using the interest on the resulting cash flow to fund the business. The first Kwik Save Discount branded store opened in Prestatyn in 1965, and produced more sales than the existing Value Foods supermarkets. The second opened in Colwyn Bay, and by 1970 Kwik Save Discount had 24 stores.
Just before it was floated on to the London Stock Exchange in November 1970, the company changed its name formally to Kwik Save Discount Group Ltd. In 1973, Gubay sold Kwik Save for £14M/$28 million.[1]
3 Guys
editAfter selling Kwik Save, Gubay repeated the low-price retail model in New Zealand, Ireland and the United States:[1]
Gubay established the 3 Guys chain in Auckland, New Zealand, while he was living there between January 1973 and April 1974. He expanded the chain to at least six stores, which he sold in 1984.[7][8] Shares in rival supermarket chain Foodtown fell dramatically when his visit was confirmed.[8] Gubay publicly asked the New Zealand Minister of Trade and Industry Joe Walding to force Unilever and other suppliers to do business with him, but an investigation found the suppliers were not breaking the law. Unilever publicly offered to supply Gubay on similar terms to other buyers.[8]
Further 3 Guys stores were opened in Ireland in the 1970s. These stores were sold to the H Williams supermarket chain in 1986, which subsequently collapsed the same year. Tesco purchased many of the former 3 Guys stores, branded as either Crazy Prices or 3 Guys, to create Tesco Ireland.[9]
3 Guys stores were also opened in the United States from 1980, but the chain went bankrupt in 1985. The stores were sold to other chains like Food Lion.[10]
Total Fitness
editWhile recovering from a back injury, Gubay founded fitness chain Total Fitness. In July 2007, Gubay sold the chain, based mainly in North West England and Ireland, with 21 locations and 150,000 members, to the private equity arm of Legal & General, for £70 million.[11]
Portville
editGubay later moved his focus to property development, via Portville.[12] He had mass investments, mainly in the United Kingdom[13] and Ireland.[14] He was named the top property developer in Wales in 2005.[15]
Church giving and charity
editIn the 1980s, Gubay paid for a replacement Roman Catholic church at the site of St Anthony's in Onchan, Isle of Man. The church was designed by Clayton/Massey, with local architect John Cryer responsible for the interior, and Gubay's suggestion of a window illustrating Christ walking on Douglas Bay by Chris Spittall as a focal point.[16] In 1990, Gubay paid for an extension to Our Lady of the Nativity church in Leixlip, County Kildare, in memory of his mother, Mary Clarke, a native of the area.[4]
Gubay funded an Isle of Man Government bursary programme, which means that students from the Isle of Man can enter any of the world's top ten universities.[17]
"Pact with God"
editIn summer 1997, Gubay told an RTÉ television documentary that he had made a "50–50" deal with God, promising when he was younger and penniless to give half his estate to the Roman Catholic Church, if he succeeded in becoming a millionaire.[14]
In March 2010, at the age of 82, Gubay announced that he was to transfer £470 million of his £480 million personal fortune to a charitable trust.[18][19]
Personal life
editGubay divorced his first wife.[20]
From 1971 Gubay and his second wife, Carmel Gubay, lived in Santon, Isle of Man. He had two children by his first wife, and was petitioned to stay on the island by locals after threatening to leave for Switzerland as a result of a dispute over taxes.[11][21]
Honours and awards
editOn 23 February 2011, Gubay was invested as Knight Commander with Star of the Order of St. Gregory the Great (KC*SG) by the Archbishop of Westminster, Vincent Nichols. Gubay was honoured with this Papal knighthood for his conspicuous service to the Church and society.[22][23][24]
Death
editGubay died aged 87, following a short illness, at his home in Wilmslow, Cheshire, on 5 January 2016.[25][26] His funeral was held in the Roman Catholic Church in Onchan, a church which was redeveloped thanks to Gubay's donation in the 1980s.[27]
References
edit- ^ a b c "Albert Gubay, The World's Richest People". Forbes. 13 February 2006. Retrieved 6 January 2016.
- ^ Nine Welsh Kwik Save stores shut BBC News, 29 May 2007
- ^ "Jewish billionaires". Jewprom.50webs.com. Retrieved 6 January 2016.
- ^ a b "Our Lady of the Nativity". Archived from the original on 2 November 2006. Retrieved 30 May 2007.
- ^ "Kwik Save Archive Shopping product reviews and price comparison". Dooyoo.co.uk. Archived from the original on 27 September 2007. Retrieved 6 January 2016.
- ^ [1] Archived 29 January 2007 at the Wayback Machine
- ^ Truttman, Lisa (27 February 2021). "At the heart of Avondale". Beacon. Archived from the original on 20 May 2023. Retrieved 5 February 2022.
- ^ a b c Green, Roger (7 March 1973). "Meet Mr Gubay, the Housewive's Friend". Victoria University of Wellington Students' Association. Salient.
- ^ "Tesco Ireland". Checkout. Archived from the original on 25 September 2006.
- ^ "Supermarket History - Charlotte, North Carolina". Groceteria.com. Archived from the original on 27 September 2007.
- ^ a b Business guru Albert Gubay sells Total Fitness to L&G for €120m Irish Independent, 1 August 2004
- ^ [2] Archived 29 September 2007 at the Wayback Machine
- ^ Health centre and pool in precinct plan This is Lancashire, 22 April 2000
- ^ a b Gubay-linked firm sued by builders Irish Independent, 8 December 1998
- ^ Gubay is top property magnate in Wales Archived from Western Mail (Cardiff, Wales) 3 November 2005
- ^ Roman Catholic Churches in the Isle of Man Isleofman.com - The Online Isle of Man Portal
- ^ [3] Archived 27 September 2007 at the Wayback Machine
- ^ Kwik Save tycoon gives up riches in pact with God Daily Telegraph, 21 March 2010
- ^ Lee, Adrian (27 March 2010). "Albert Gubay almost made a £1bn from Kwik Save now he wants to get away". Express.co.uk. Retrieved 15 August 2019.
- ^ "Philanthropist to be knighted - Isle of Man News". iomtoday. Archived from the original on 11 February 2011. Retrieved 18 August 2011.
- ^ "Court rules on Gubay's former home". 3 June 2018.
- ^ Papal knighthood for UK philanthropist Archived 26 July 2011 at the Wayback Machine - website CathNews, 1 February 2011
- ^ Albert Gubay 'overwhelmed' with Papal award - website BBC News, 23 February 2011
- ^ Pope gave personal consent for Albert Gubay honour - Isle of Man Nation Website, 24 February 2011
- ^ "Albert Gubay dies - Isle of Man Today". M.iomtoday.co.im. Retrieved 6 January 2016.[permanent dead link]
- ^ "Entrepreneur Albert Gubay dies aged 87 | Isle of Man News | News". Manx Radio. Retrieved 6 January 2016.
- ^ "Funeral held for Kwik Save billionaire". BBC News. 13 January 2016. Retrieved 30 January 2020.