Metricon CEO fronts the media after construction company enters crisis talks

The CEO of a major building giant rumoured to be on the brink of collapse has fronted the media and made a strong claim.

The CEO of a major building giant rumoured to be on the brink of collapse has fronted the media and strongly denied those claims.

On Thursday, acting CEO of Metricon Peter Langfelder acknowledged that the company was having a “tough time” after the sudden death of its CEO on Monday as well as struggling like other construction firms during a rough spot for the industry.

“This is an extremely difficult time for our business, we’ve just lost the CEO and co-founder only on Monday, so we’re dealing with the grief,” Mr Langfelder began.

However, he doubled down on his earlier stance that Metricon is not insolvent.

“We’ve got a strong history of performance, all our contracts in place are profitable, we’re completely up to date with all our trades, our suppliers, our employees, commissions, everything is completely up to date,” Mr Langfelder said in a press conference.

“In terms of our business, it’s just business as usual.

“Our business has been very strong for 45 years and will continue to for a long long time to come.”

Late on Wednesday, reports emerged that Metricon was engaged in crisis talks, prompting concerns that the building behemoth was about to go bust, as many other construction firms have done in the last few months.

Stream more business news live & on demand with Flash. 25+ news channels in 1 place. New to Flash? Try 1 month free. Offer ends 31 October, 2022 >

Acting CEO of Metricon Peter Langfelder fronts the media.

Sales staff within the company were being instructed to increase cash flow by securing more deposits, the Herald Sun reported on Wednesday.

One salesperson told the Herald Sun they were owed hundreds of thousands of dollars in commission and were being pushed to secure more cashflow to help keep the business afloat.

“We have been pressured now to push for as many deposits as possible,” they said.

Metricon bosses are expected to meet with major clients including the Victorian Government sometime on Thursday.

Metricon employs approximately 2500 staff, primarily in eastern Australia, where it has a pipeline of roughly 4000 homes under construction.

It is considered the largest construction company in Australia.

Mr Langfelder denied these claims at the time, stating on Wednesday: “There is simply no basis to these rumours. Metricon is a strong viable business without any solvency problem.”

Peter Langfelder with former CEO Mario Biasin. Mr Biasin was confirmed to have died on Monday at age 71.

A Metricon home under construction. Picture: David Caird

Mr Langfelder only became the new CEO earlier this week, after the previous chief executive died in tragic circumstances on Monday.

Metricon co-founder and CEO Mario Biasin died unexpectedly at the age of 71.

The company confirmed Mr Biasin had been experiencing mental health issues.

In a statement, an executive from Metricon, Ross Palazzesi, revealed his colleague’s sudden death was a shock.

“As friends and colleagues of Mario, we are shocked and so saddened by the news,” he said on Monday.

“Our hearts and thoughts are with the Biasin family. We will ensure Metricon Homes continues all operations and on-site construction as usual during a very emotional time.”

Mr Langfelder said the goal was for the company to continue operating as usual following the sudden loss of Mr Biasin.

“We are focused on the business running as smoothly as possible, servicing all our customers and continuing to get homes to site and completed on time,” he said.

“We have delivered a message to our team that the goal is business as usual, as Mario would have wanted.”

This afternoon we are mourning the sudden and unexpected death of company Founder and Chief Executive Officer Mario Biasin. Mario jointly founded Metricon in 1976, growing it to become an industry leader. Our hearts and thoughts are with the Biasin family. pic.twitter.com/BKznoZT0qx

— Metricon Homes (@MetriconHomes) May 16, 2022

The construction industry has been beset by problems in the wake of the Covid-19 pandemic.

News.com.au previously reported that a “perfect storm” of factors – from supply chain issues to instability caused by Covid – is smashing the industry leading major building projects worth billions of dollars to come to a grinding halt and to blow outs on some home construction projects by as much as $100,000.

Two major Australian construction companies including Gold Coast-based Condev and industry giant Probuild have already gone into liquidation this year, alongside smaller operators like Hotondo Homes Hobart and Perth firms Home Innovation Builders and New Sensation Homes.

High rise builder ABG Group also went into liquidation last year too, as well as Queensland outfit Privium Home which impacted more than 2000 home buyers and left creditors owed close to $43 million.

All the company collapses have left a devastating trail of workers out of pocket and customers with unfinished homes who are in some cases financially ruined.

- With Sarah Sharples and NCA Newsire

Originally published as Metricon CEO fronts the media after construction company enters crisis talks