Du Val Group collapse leaves investors with 59% losses as founders fight legal battles
The collapse of the Du Val Group in 2024 left hundreds of investors facing heavy losses. Founders Charlotte and Kenyon Clarke now face frozen assets and passports as investigations continue. Forensic accountants have since uncovered troubling details in the group's financial records.
The Du Val Group, made up of around 70 companies, owed over $300 million when it failed last year. Since then, statutory managers—John Fisk, Stephen White, and Lara Bennett—have taken control, reducing the debt from $268 million to $226 million. Despite selling properties like Earlsworth, Sunnyvale, and Edmonton, the proceeds fell short of covering what was owed.
Investors in the group's Build to Rent Fund are now expected to recover just 41 cents for every dollar invested. The sale of residential assets has not bridged the gap, leaving many with significant losses.
Legal troubles have also mounted. A British court recently ordered some Du Val entities to pay $1.35 million NZD in damages and an additional $164,205 NZD in costs. Meanwhile, the Financial Markets Authority is examining the group's affairs and holds the power to bring charges if evidence supports it.
Forensic accountants reviewing the accounts have flagged multiple 'areas of concern.' The Clarkes, who founded the group, have avoided public comment and taken their case to the Court of Appeal in an attempt to refuse interviews.
The fallout from the Du Val Group's collapse continues, with investors recovering only a fraction of their money. Regulators and statutory managers are still piecing together the financial damage. The outcome of ongoing legal battles and investigations will determine the next steps for those affected.
