Albert Gubay
Encyclopedia
Albert Gubay, KC*SG
(born 9 April 1928) is a Welsh
businessman
and philanthropist
, who made his fortune in retailing with Kwik Save
, building it further on investments, mainly in property development. According to Forbes, in 2006 Gubay had an estimated fortune of approximately GBP500 million (USD1.1 billion), making him the 698th richest person in the world.
, to a Jewish father and an Irish
-born Roman Catholic mother, 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.
, and rented its first retail shop in Rhyl in July 1959. His aggressive price cutting resulted in some manufacturers refusing to supply him.
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.
, Ireland
and the United States
:
. Gubay sold the mainly North West
and Irish based chain of 21 locations and 150,000 members to the private equity
arm of Legal & General
, in July 2004 for £70 million.
. He was named the top property developer in Wales in 2005.
, 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 focal point. 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.
Gubay has been generous in his donations to various charities. These include an Isle of Man Government
bursary
program fully funded by Gubay, which means that students from the Isle of Man can enter any of the world's top ten universities
.
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.
In March 2010 Gubay announced that he was to transfer £470 million of his £480 million personal fortune to a charitable trust.
, Isle of Man
since 1971. He has two children with his first wife, and was petitioned to stay on the Island by locals after he threatened to leave for Switzerland
in light of a dispute over taxes.
(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.
Order of St. Gregory the Great
The Pontifical Equestrian Order of St. Gregory the Great , was established on September 1, 1831, by Pope Gregory XVI, seven months after his election.It is one of the five orders of knighthood of the Holy See...
(born 9 April 1928) is a Welsh
Welsh people
The Welsh people are an ethnic group and nation associated with Wales and the Welsh language.John Davies argues that the origin of the "Welsh nation" can be traced to the late 4th and early 5th centuries, following the Roman departure from Britain, although Brythonic Celtic languages seem to have...
businessman
Businessperson
A businessperson is someone involved in a particular undertaking of activities for the purpose of generating revenue from a combination of human, financial, or physical capital. An entrepreneur is an example of a business person...
and philanthropist
Philanthropist
A philanthropist is someone who engages in philanthropy; that is, someone who donates his or her time, money, and/or reputation to charitable causes...
, who made his fortune in retailing with Kwik Save
Kwik Save
Kwik Save was a discount supermarket chain in the United Kingdom until 2007. Its stores were small to medium sized high street supermarkets, mainly located in areas with below average incomes...
, building it further on investments, mainly in property development. According to Forbes, in 2006 Gubay had an estimated fortune of approximately GBP500 million (USD1.1 billion), making him the 698th richest person in the world.
Early life
Born on 9 April 1928 in RhylRhyl
Rhyl is a seaside resort town and community situated on the north east coast of Wales, in the county of Denbighshire , at the mouth of the River Clwyd . To the west is the suburb of Kinmel Bay, with the resort of Towyn further west, Prestatyn to the east and Rhuddlan to the south...
, to a Jewish father and an Irish
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
-born Roman Catholic mother, Gubay began his business career in North Wales
North Wales
North Wales is the northernmost unofficial region of Wales. It is bordered to the south by the counties of Ceredigion and Powys in Mid Wales and to the east by the counties of Shropshire in the West Midlands and Cheshire in North West England...
selling non-sugar sweets during post-World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
confectionery
Confectionery
Confectionery is the set of food items that are rich in sugar, any one or type of which is called a confection. Modern usage may include substances rich in artificial sweeteners as well...
rationing
Rationing
Rationing is the controlled distribution of scarce resources, goods, or services. Rationing controls the size of the ration, one's allotted portion of the resources being distributed on a particular day or at a particular time.- In economics :...
. When rationing came to an end in the mid-1950s, the confectionery business ran into difficulties and Gubay moved into retailing via market stalls.
Kwik Save
Gubay founded Value Foods on 11 May 1959 in PrestatynPrestatyn
Prestatyn is a seaside resort, town and community in Denbighshire, North Wales. It is located on the Irish Sea coast, to the east of Rhyl. At the 2001 Census, Prestatyn had a population of 18,496.-Prehistory:...
, and rented its first retail shop in Rhyl in July 1959. His aggressive price cutting resulted in some manufacturers refusing to supply him.
In 1964 Gubay visited the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
with fellow director Ken Nicholson, and learnt about the "baby shark" method of retailing. Combined with ideas gained from West German
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
retailer Aldi
ALDI
ALDI Einkauf GmbH & Co. oHG, doing business as ', short for "Albrecht Discount", is a discount supermarket chain based in Germany...
, 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
Kwik Save
Kwik Save was a discount supermarket chain in the United Kingdom until 2007. Its stores were small to medium sized high street supermarkets, mainly located in areas with below average incomes...
branded store opened in Prestatyn
Prestatyn
Prestatyn is a seaside resort, town and community in Denbighshire, North Wales. It is located on the Irish Sea coast, to the east of Rhyl. At the 2001 Census, Prestatyn had a population of 18,496.-Prehistory:...
in 1965, and produced more sales than the existing Value Foods supermarkets. The second opened in Colwyn Bay
Colwyn Bay
- Demography :Prior to local government reorganisation on 1 April 1974 Colwyn Bay was a municipal borough with a population of c.25,000, but in 1974 this designation disappeared leaving five separate parishes, known as communities in Wales, of which the one bearing the name Colwyn Bay encompassed...
, and by 1970 Kwik Save Discount had 24 stores.
Just before it was floated on to the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
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.
3 Guys
After selling Kwik Save, Gubay repeated the low-price retail model in New ZealandNew Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
, Ireland
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
:
- New Zealand
- Ireland - Gubay founded 3 Guys in Ireland, selling the chain to the H Williams chain of supermarkets in 1986, which subsequently collapsed in the same year. Many ended up as outlets of other chains, including Crazy PricesCrazy PricesCrazy Prices was a supermarket chain operating in the Republic of Ireland and Northern Ireland formerly owned by Associated British Foods...
, which was later bought by TescoTescoTesco plc is a global grocery and general merchandise retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues and the second-largest measured by profits...
together with a residual stake in a new 3 Guys chain to create Tesco IrelandTesco IrelandTesco Ireland is the Irish arm of supermarket group Tesco. It was formed in Tesco plc's 1997 takeover of the Irish retailing operations of Associated British Foods, namely Powers' Supermarkets Limited and its subsidiaries, trading as Quinnsworth and Crazy Prices.Tesco operates supermarkets under... - United States - Gubay entered the United States in 1980, but was not as successful as in his other locations. The chain went bankrupt late in 1985, with the stores selling to other chains including Food LionFood LionFood Lion LLC is an American grocery store company headquartered in Salisbury, North Carolina that operates approximately 1,300 supermarkets in 11 Mid-Atlantic and South Atlantic states as well as Tennessee, Kentucky and West Virginia under the Food Lion, Harveys Supermarket, Bloom, Bottom Dollar...
Total Fitness
While recovering from a back injury, Gubay founded fitness chain Total FitnessTotal Fitness
Total Fitness is a chain of health clubs in the UK, operated by Total Fitness UK Limited.-History:Total Fitness was established by Kwik Save founder Albert Gubay in 1993 on the Isle of Man...
. Gubay sold the mainly North West
North West England
North West England, informally known as The North West, is one of the nine official regions of England.North West England had a 2006 estimated population of 6,853,201 the third most populated region after London and the South East...
and Irish based chain of 21 locations and 150,000 members to the private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
arm of Legal & General
Legal & General
Legal & General Group Plc , commonly known as Legal & General, is a multinational financial services company headquartered in London, United Kingdom. Its products include life insurance, general insurance, pensions and investments. It has operations in the United Kingdom, Egypt, France, Germany,...
, in July 2004 for £70 million.
Portville
Gubay has since moved his focus to property development, via Portville. He has mass investments, mainly in the United Kingdom, Ireland, and RussiaRussia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
. He was named the top property developer in Wales in 2005.
Church giving and charity
In the 1980s, Gubay paid for a replacement church at the site of St Antony in OnchanOnchan
Onchan , is a village in the parish of Onchan on the Isle of Man. It is at the north end of Douglas Bay. Although administratively a village, it has the second largest population on the island, after Douglas, with which it forms a conurbation....
, 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
Douglas, Isle of Man
right|thumb|250px|Douglas Promenade, which runs nearly the entire length of beachfront in Douglasright|thumb|250px|Sea terminal in DouglasDouglas is the capital and largest town of the Isle of Man, with a population of 26,218 people . It is located at the mouth of the River Douglas, and a sweeping...
by Chris Spittall as focal point. In 1990, Gubay paid for an extension to Our Lady of the Nativity church in Leixlip
Leixlip
-Politics:Since 1988 Leixlip has had a nine member Town Council , headed by a Cathaoirleach , which has control over many local matters, although it is limited in that it is not also a planning authority...
, County Kildare
County Kildare
County Kildare is a county in Ireland. It is part of the Mid-East Region and is also located in the province of Leinster. It is named after the town of Kildare. Kildare County Council is the local authority for the county...
, in memory of his mother, Mary Clarke, a native of the area.
Gubay has been generous in his donations to various charities. These include an Isle of Man Government
Isle of Man Government
The Isle of Man Government is the government of the Isle of Man. The formal head of the Isle of Man Government is the Lieutenant Governor, representing HM Queen Elizabeth II, Lord of Mann...
bursary
Bursary
A bursary is strictly an office for a bursar and his or her staff in a school or college.In modern English usage, the term has become synonymous with "bursary award", a monetary award made by an institution to an individual or a group to assist the development of their education.According to The...
program fully funded by Gubay, which means that students from the Isle of Man can enter any of the world's top ten universities
University
A university is an institution of higher education and research, which grants academic degrees in a variety of subjects. A university is an organisation that provides both undergraduate education and postgraduate education...
.
"Pact with God"
In summer 1997, Gubay told an RTERaidió Teilifís Éireann
Raidió Teilifís Éireann is a semi-state company and the public service broadcaster of Ireland. It both produces programmes and broadcasts them on television, radio and the Internet. The radio service began on January 1, 1926, while regular television broadcasts began on December 31, 1961, making...
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
Roman Catholic Church
The Catholic Church, also known as the Roman Catholic Church, is the world's largest Christian church, with over a billion members. Led by the Pope, it defines its mission as spreading the gospel of Jesus Christ, administering the sacraments and exercising charity...
, if he succeeded in becoming a millionaire.
In March 2010 Gubay announced that he was to transfer £470 million of his £480 million personal fortune to a charitable trust.
Personal life
Gubay and his second wife haved lived in SantonSanton (parish)
Santon is a parish of the Isle of Man. It has an area of approximately eight square miles and is the island's smallest parish, located in the sheading of Middle which is composed of the parishes of Braddan, Marown and Santon. Currently the Captain of the Parish is Donald Gelling.The parish church...
, Isle of Man
Isle of Man
The Isle of Man , otherwise known simply as Mann , is a self-governing British Crown Dependency, located in the Irish Sea between the islands of Great Britain and Ireland, within the British Isles. The head of state is Queen Elizabeth II, who holds the title of Lord of Mann. The Lord of Mann is...
since 1971. He has two children with his first wife, and was petitioned to stay on the Island by locals after he threatened to leave for Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
in light of a dispute over taxes.
Honours and awards
On 23 February 2011, Gubay was invested as Knight Commander with Star of the Order of St. Gregory the GreatOrder of St. Gregory the Great
The Pontifical Equestrian Order of St. Gregory the Great , was established on September 1, 1831, by Pope Gregory XVI, seven months after his election.It is one of the five orders of knighthood of the Holy See...
(KC*SG) by the Archbishop of Westminster
Roman Catholic Archdiocese of Westminster
The Roman Catholic Archdiocese of Westminster is an archdiocese of the Latin Rite of the Roman Catholic Church in England. The archdiocese consists of all the London boroughs north of the River Thames and west of the River Lea, together with the towns southwest of Staines and Sunbury-on-Thames and...
, Vincent Nichols. Gubay was honoured with this Papal knighthood for his conspicuous service to the Church and society.