Zuber (left) and Mohsin Issa are still together and have earned their £5 billion fortune in unison. Photo: John Super
Towering The 95ft tall mosque overlooking the streets of Blackburn will soon become a £5 million mosque that will be a grand monument to the lucrative partnership between Mohsin and Zuber Issa. Family, faith and finance are bound in steel.
The Lancaster House will symbolize not only the billionaire brothers' meteoric rise to wealth and success, but more importantly, demonstrate their commitment to the Muslim faith.
According to a close family member, «Islam is always at the forefront» of everything the brothers do, who have so far amassed a £5 billion fortune together and in unison.
However, recent chatter in the retail sector points to a rift between Mohsin and Zuber, with tensions said to be rising over family issues.
Crucially, this alleged tension comes at a time of unprecedented financial pressure on Asda's owners, with billions of pounds of debt slamming into their empire like never before amid higher interest rates.
>Their success has already hammered the geographic The wedge between the brothers is with Mohsin running the day-to-day operations of Asda from Leeds and Zuber overseeing EG Group's petrol station empire from Blackburn. The arrangement, although planned, contributed to talk of discord.
“It's not all harmonious in the family, and that's a shame,” says one industry insider.
On Friday, a source close to the brothers insisted: «Blood is thicker than water and they will always have each other's back.» Zuber Issa oversees the Blackburn-based EG Group's petrol station empire. Photo: John Super
Issa's relationship was the foundation of their business success. Zuber's wife Asma spoke about the brothers' intertwined lives during an interview with Radio 4 in 2021.
“They really hate being called the billionaire brothers. They are very different. Zuber is a person who is very easy to approach, he is kinder. Mohsin is very work oriented.”
EG Group Chief Commercial Officer Ilyas Munshi added: “Zuber is a visionary and loves to create things. Mohsin, on the other hand, is more interested in operational management, details, how to achieve success?
Despite their different personalities, Asma stressed that Islam is important to both of them, who grew up living in a terraced house in Blackburn with their parents, immigrants from Gujarat, India.
“I don’t think anything will ever surpass faith,” Asma said. “From the moment they wake up until night falls, they never miss a prayer. We have five prayers a day — Islam is always in the foreground.”
Not only has this led to the creation of a £5 million mosque, but the brothers also donate 2.5% of their fortune to charity through the Issa Foundation, which supports hospitals and provides free breakfasts to schoolchildren in and around Blackburn.
A new mosque and community facility is being built on Preston New Road in Blackburn by the Issa Foundation. Photo: Lancashire Telegraph
During an interview with the BBC, Asma explained how it was Zuber who started the Blackburn brothers' petrol empire, which began with an original petrol station in Bury 22 years ago and was turbocharged after TDR bought a 50% stake in EG Group in 2015.
«Zuber always wanted to do his own thing,» she said. “He was really interested in retail.
“I don't know what he saw in the oil industry. Zuber visited all sites every Saturday.
“After a few years, when Zuber could no longer handle everything on his own, he approached his brothers and said, “One of you, come and help me,” and then Mohsin came onto the scene. «.
The pair soon expanded their vast empire around the world, taking over thousands of gas stations and turning them into places where one could buy food as well as fill up their tank.
This pattern led to them being named 'Petrol Station Traders of the Year' in 2011, earning the winner a check for £3,000.
That's a far cry from the £5 billion the couple are now worth, which has enabled them to build a complex of five mansions on a leafy street in Blackburn, as well as purchase a £25 million property in Knightsbridge, London.
The trappings of wealth have led to the purchase of two private Bombardier jets, while their properties are believed to have access to a swimming pool, a private prayer room and a cinema.
Their commitment to the community has previously led to which they drew up plans to build Europe's largest Muslim cemetery in Blackburn, although these were later withdrawn.
The brothers' real estate arm also recently submitted an application for a 603,000 sq ft warehouse facility. ft. near Blackburn.
In an interview with the FT in 2018, Zuber said: “People always ask when we will move to London or Manchester. But the quality of life here is excellent. Many people spend a few years in London and then come to the North West. They want to raise a family and feel less pressure.”
But since being acquired by Leeds-based Asda in a £6.8bn debt deal in 2021, Issa's horizons have inevitably expanded as new doors have opened. towards them, and the scrutiny they face has increased.
At a disastrous select committee hearing earlier this year, Mohsin told MPs that he was a “deeply private person” who was uncomfortable in public.
However, a former senior Asda official says maintaining that confidentiality will prove an impossible task when running one of the biggest retailers in the country.
“Retail executives are like celebrities,” he says. speaks. “They need to give interviews and be open to the public.
“It's very hard to live under a rock as a supermarket boss. This is very important for people's lives: in which supermarket they shop, they define themselves.»
MPs continue to raise questions about the Issa brothers' finances and the state of their empire. Last week, Mohsin sought to ease concerns about the company's complex structure by writing to Business and Commerce Committee chairman Liam Byrne MP, demanding he deny listing companies offshore in Jersey for tax purposes.
Whatever financial pressure they face in a world of higher interest rates is undeniable. Last week they sold their network of 200 KFC franchises to pay off debts.
As one city analyst said: “Next year will pose more than less problems for Asda.”
In many ways. This is due to $5.7bn (£4.5bn) of debt attached to Asda's parent company EG Group, which will continue to pose financial challenges as long as interest rates remain high.
However, what happened? The bill for higher business rates that Asda will face across its more than 600 stores in April next year has not yet been fully addressed.
This is in addition to the expected rise in labor costs caused by the government's recent increase in the national living wage, which will affect Asda's 140,000 employees.
These cost increases come amid falling retail sales as Asda continues to lose market share to discounters Aldi and Lidl.
All of this will threaten a balance sheet that is already under pressure.
“If you look at Asda's performance, only Iceland will have worse sales. dynamics in the UK,” says the City analyst. “They are losing volume, they have a lot of debt, and costs are rising.
“This is the time when you want everyone to be looking in the same direction and excited.”
Their signature debt-fueled takeovers are no longer on the menu. Instead, the brothers are scrambling to cut costs by selling the business and using the proceeds to reduce their overall borrowing.
But rumors of discord have led some to suggest the pair may not be able to be in the same room. along with a senior industry figure who even called the consequences potentially «irreparable.»
This interpretation has been rejected by a source close to Issa, who claims that Mohsin and Zuber meet regularly and talk every day.
They noted that the pair visited overseas businesses together on the same flight earlier this month, and also held EG Group's quarterly earnings results in the same hall on November 29 in Blackburn.
However, regardless state of their relationship, the retail executive of a rival supermarket chain linked Asda's problems to Mohsin's power at the top. The upstart grocer has maintained control since the company's search for a new CEO failed last year.
The executive says Asda, which has been linked to outgoing Tesco chief Jason Tarry, will struggle to find someone to run the business while Mohsin is at the helm.
This view is shared by another industry source: “Mohsin is not a backseat driver, he sits in the passenger seat. They need to figure out Mohsin's role.
“He will become executive chairman and they will bring in a managing director? Or is this business unable to hire a CEO while he's there? This in itself does not promote clarity and direction for the senior management team, let alone recruiting talent.
“Fundamental changes to Asda's management may be required if they are to attract new senior management.”
A source close to Asda said: “The process to identify a long-term CEO for Asda remains active. In the meantime, Mohsin continues to lead Asda, drawing on his extensive experience of transforming businesses. He is supported by an exceptionally strong management team that runs the business on a day-to-day basis.”
Similar questions may arise next week when Mohsin is back in the spotlight as he faces renewed heat before the Business and Commerce Committee. on the role of private equity in the retail sector.
He is hoping to improve on his last performance, where his responses sparked anger and even led to accusations of contempt from MPs who claimed they were misled. Mohsin has denied the allegations.
Mohsin Issa will be in the spotlight when he answers questions from MPs again. Photo: John Super
Clive Black, an analyst at Shore Capital, has followed the couple's journey closely.
“The Issa brothers were one of the most formidable family business couples in modern Britain,” he says.
“What they have done very quietly from a petrol garage in Bury is built a global empire. And this is where I have incredible admiration for them. They love to take risks and I think they are exceptionally lucky to have TDR as their partner.
“What I'm completely impressed with Issa is that they have mastered the debt capital markets.
“These guys built a business, became billionaires and scored an incredible deal for Asda. It was brilliant in terms of identifying opportunities and understanding the debt markets.”
However, even Black admits that they were caught off guard by the rise in interest rates over the past 18 months: “They clearly did not expect interest rates to rise as sharply as they did.” and quickly, just like them. This meant that they had to get rid of the business. I imagine it's been quite intense, a different context for rapid growth.»
Whether business stresses have since combined with family matters and resulted in irreparable consequences is a question that only the brothers can answer. They declined to comment.
Свежие комментарии