Ballarat builder Langdon Building enters voluntary administration, 115 customers affected

The future of a prominent regional builder that entered voluntary administration earlier this year will be determined at a upcoming creditors' meeting.

A Langdon display home in Lucas, Ballarat. Photo: Langdon

A prominent Ballarat builder in financial straits will be able to finish construction of unfinished homes and its employees will keep their jobs if a restructuring plan goes ahead, administrators say.

Langdon Building was established about two decades ago and has built homes across Ballarat, as well as in Bendigo, Geelong, and Melbourne suburbs.

In a letter to suppliers in January, managing director Shane Langdon said the company had made the “hard decision” to restructure, with construction works to be halted while administrator Cor Cordis stepped in.

“I understand this will not be welcome news, but let me assure you: Langdon Building is not in liquidation,” Mr Langdon, who has worked in the building industry for more than 30 years, said.

“We have not collapsed.”

In a statement, the company said builders across the country faced “extremely challenging economic conditions”, were still dealing with supply and labour shortages stemming from the Covid pandemic, and were affected by interest rates reducing demand.

“We made the difficult decision to appoint voluntary administrators to ensure the business can move forward so we can get back on-site and finish customers’ homes with confidence and return to pre-pandemic strength,” owners Pam and Shane Langdon said.

Langdon Builders issued a notice to suppliers saying it was hitting "pause" and entering voluntary administration. Picture: Supplied

All construction was paused during the five-week administration period, affecting 115 customers.

Cor Cordis said it had “commenced an urgent review” of Langdon, with preliminary discussions already having been held with a view to restructuring the business.

All options to restructure or recapitalise the business would be explored, Langdon Building said, including a deed of company arrangement or a sale.

On March 4, a meeting will be held at which creditors will vote on the future of Langdon Building.

In a report issued to creditors in February, administrators recommended going ahead with the proposed restructure, which would allow the company to stay in business and employees to keep their jobs.

The company will also, administrators said, be able to complete the construction of homes.

Cor Cordis partner Sam Kaso said the restructure proposal had been met with an "overwhelmingly positive response".

“It addresses the needs of all key stakeholders from customers to suppliers, employees, and creditors," he said.

"We are hopeful that this will translate into a positive result at the upcoming creditors’ meeting.

"Overall, considering the current challenges and uncertainty in the home-building sector, this is a positive development."

Langdon Building Pty Ltd is headquartered in Ballarat, west of Melbourne, and has been a registered business since 2005.

On its website, it said it “constructs single and double-storey homes including custom designs in Melbourne Metro, Geelong, Ballarat & Bendigo”.

It’s understood all customers who signed a building contract and paid a deposit with Langdon had insurance with the Victorian Managed Insurance Authority.

Customers were told to contact administrators on [e-mail] or [e-mail] with their concerns.

A staggering 2349 construction firms have collapsed in the past year, including two other Victorian based operations — Montego Homes and Alpha Building Group — in January alone.

Of the 8471 business collapses for 2023, almost 28 per cent were in the building and construction industry, according to data put out by the corporate regulator.