A syndicate of contractors say they’re ready to press ‘go’ on a High Court application to liquidate Du Val Group, the high-profile Auckland residential developer.
The creditors’ spokesperson says they have retained solicitor Alistair van Schalkwyk and a barrister to pursue unpaid invoices of more than $1 million. “Court papers are due to be filed by our barrister.”
Du Val Group director Kenyon Clarke, who owns and runs the company with wife Charlotte, denies the company owes money to contractors. “The representation is utter nonsense and non factual,” he told Newsroom last night, in a LinkedIn message.
Du Val’s website says it has 558 units in development across Auckland.
Subbies on two Mt Wellington projects say payments have slowed to a halt over the past six months. Newsroom has spoken with four individuals or firms who say they’re owed money.
When Newsroom visited the 59-unit Verge Apartments, scaffolders who said they hadn’t been paid were removing their gear. The site was otherwise empty and unsecured. The open door of the site office swung in the breeze; plans and equipment were left behind.
One subcontractor, removing scaffolding yesterday on behalf of SW Scaffolding, said that if one site was shut down, they feared others would follow. “It’s an embarrassing sight, because you can see it from the motorway,” he said. “They owe money, so we’re just here to strip our scaffolds out.”
The spokesperson for the creditors’ syndicate, and a third creditor who is not part of the syndicate, said payments on the Parry Rd and Verge developments had slowed or stopped over the past six months. There had been “drip-feeding” of a few small payments.
One of the main project management consultants on some of the Du Val developments, including Verge Apartments at Hillside, is CPMC. Director Jonathan Williams says CPMC’s bills are all paid and there are no issues with its working relationship.
He confirms that the Hillside site is “closed at the moment”. “There are a number of design changes that are being made, and it’s not prudent to be carrying on during that time, in relation to the project.”
Du Val says the developments are solvent, and the Verge project’s US-based, Caymans-registered financier 1543 Capital remains onboard as lender.
In an email late on Thursday night, the company’s chief marketing officer Gabrielle Byfield batted off questions.
She said the Verge site was “not abandoned” but did not answer why it had been left unsecured and unstaffed.
She denied contractors were reclaiming scaffolding and other materials, or that they hadn’t been paid. “All legitimate accounts will be paid,” she added.
Newsroom first approached Du Val for comment shortly after midday, Thursday. Byfield was subsequently asked to confirm that the company had replied that afternoon to the syndicate of creditors, offering to discuss a settlement.
“This is factually incorrect,” she replied. She did not explain in what respect it was incorrect, saying only that Du Val had received “no such correspondence” from the syndicate’s lawyer, threatening legal action.
Newsroom has been told final statutory demands were lodged in December, warning that the company faced legal action if the invoices weren’t paid by January.
Byfield said Du Val Group and its Hillside limited partnership were both solvent.
For glamour business couple Kenyon and Charlotte Clarke, this was meant to be their breakthrough year. The teaser to their new self-funded reality TV show The Property Developers went live last month on YouTube and its own website. It’s not been picked up by any broadcaster yet.
The six-episode show promises a unique perspective into the journey of building a billion dollar Du Val Group property and lifestyle business, through the eyes of a charismatic entrepreneur and a woman taking on a male-dominated industry.
“This is not your typical reality show,” the blurb says. “We see how this dynamic power couple merge family life and business together seamlessly, giving viewers an all-access pass to the highs and lows of entrepreneurship.”
Shots of the yacht, the jet, the helicopter, the couple’s Rolls Royce Phantom with the licence plate ‘Du Val’, cut to Kenyon Clarke at home in front of Prada and Yves St Laurent coffee table books.
Much of the Clarkes’ business is celebrated in front of the cameras. Yesterday Kenyon Clarke posted an Instagram video of him signing off a $103m deal with Chancellor Construction.
It’s a big step up from his early troubles in business. “I lost it all, and had to start right again from my beginnings,” he says in the video teaser.
It’s not clear whether the couple are still filming episodes, as Newsroom reveals scaffolders and other contractors removing their property from the Verge Apartments building site in Auckland’s Mt Wellington this week.
In the teaser video, in what might be construed as somewhat of a warning to those who might cross him publicly, the volatile businessman is shown picking up his phone. “Do you know what, I actually need to call my lawyers. It was kind of funny, but if he’s putting this shit up publicly, what the f***?”
Maybe they could sell the boat, jet, helicopter and Rolls Royce to pay contractors. Or maybe it’s all show and no go!