PHOTO: Kenyon and Charlotte Clarke, Du Val Group
Tradespeople and cleaners are among those facing an uncertain future after the Auckland property developer Du Val Group was placed into receivership, leaving investors and others potentially millions out of pocket.
Founded by developers Kenyon and Charlotte Clarke, Du Val Group entered receivership earlier this month following action by the Financial Markets Authority.
The company’s complex network of entities is now being unraveled, revealing a growing list of creditors. An initial report by receivers PwC is expected by Friday, which should provide more details for those still owed money.
One affected individual is Sarah*, a solo mother who invested with the group, lured by the promise of 10% returns. She spoke to 1News on the condition of anonymity, as Du Val required investors to sign an agreement not to speak to the media.
“I was just newly divorced and needed some safe investments,” Sarah said. “I wasn’t told how high risk this was.”
High profile property investor and developer Du Val Group placed into receivership
Sarah was assured access to her money whenever she wanted, but found the company dismissive when she tried to withdraw.
“Every time I tried to reach out to them and ask them when I can access my money, they were just dismissive,” she said.
She added: “I’m feeling very sad – not just for myself – and disappointed also for all the other investors that have trusted the company with their hard-earned money.”
Upset Tradies and Cleaners Left Hanging
The fallout extends far beyond Du Val’s individual investors. Subcontractors working on the company’s developments reported irregular payments late last year, which eventually stopped altogether.
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Aniket Bapat of Deccan Property Services, a subcontractor, said his business was owed hundreds of thousands, representing “a major portion of my turnover for a year.”
“A few months of sleepless nights, but then, what do you do? You just have to carry on,” Bapat said. “I was on the verge of losing my house, because that was the only thing that I could have done to be able to pay my creditors.”
One upset subcontractor arrived at a Du Val site where 1News was filming, claiming to be owed nearly $200,000 and forced to lay off staff. Other subcontractors and service providers, including cleaners, report being owed tens to hundreds of thousands. Most are too scared to talk publicly for fear of potential repercussions.
Rugby Team Among Those Owed Money
1News understands the Blues rugby team, sponsored by Du Val for the past couple of seasons, are among those owed money. The Clarkes had previously expressed pride in their sponsorship, with Kenyon Clarke stating in a promotional video that it was “something we’re hugely, hugely proud of.”
The company’s high-flying founders had been filming for an unreleased reality show documenting their property development ambitions.
SOURCE: 1NEWS