Email to spooked Metricon customers reveals extent of collapse worries

An email sent to Metricon customers yesterday reveals just how spooked Aussies have been by rumours of the construction giant’s collapse.

Metricon hastily emailed customers on Thursday in a desperate bid to allay fears yet another construction collapse was looming.

For days now, concern has been mounting that Australia’s biggest builder was on the verge of ruin, as claims the company was facing serious financial problems emerged.

Yesterday, acting CEO Peter Langfelder shot down those allegations, declaring it was “business as usual” in a press conference on a building site, although he admitted the company was experiencing some delays on projects.

“Our business has been very strong for 45 years and will continue to (be), for a long, long time to come,” Mr Langfelder told reporters, following the shock death of founder Mario Biasin on Monday.

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 >

The email was sent to Metricon customers yesterday. Picture: Supplied

“The reality is, we’re strong, we’re paying everybody on time, nobody’s been behind in any payments and if anyone can turn up.”

Metricon representatives also met with the Victorian government on Thursday for crisis talks about the escalating issues plaguing the sector, including the surging costs of essential materials such as timber and steel.

Gold Coast-based Condev and industry giant Probuild both already went into liquidation in recent months, while smaller operators like Hotondo Homes Hobart and Perth firms Home Innovation Builders and New Sensation Homes, as well as Sydney-based firm Next have also failed, leaving homeowners out of pocket and with unfinished houses.

But an email sent to Metricon customers on Thursday afternoon following Mr Langfelder’s press conference reveals just how spooked Aussies are becoming, following a string of high-profile construction collapses.

‘Baseless rumours’

The email hit out at “baseless rumours” Metricon was in trouble, instead insisting it was “business as usual”.

“Good afternoon, We wanted to reach out following media speculation about the future of our company,” the email begins.

“Today we reaffirmed our long-term viability, following the sudden death of co-founder and CEO Mario Biason on Monday via a media statement.

“Our displays remain open for business as per normal and our new home advisors are ready to help you start your new home building journey.

“Our acting CEO Peter Langfelder fronted the media this afternoon, in an effort to put an end to baseless rumours.”

Many Aussies remain doubtful Metricon will survive. Picture: David Caird

The email included quotes from acting CEO Mr Langfelder, who said Metricon was a “long-term, viable business, with a strong history of performance”.

“All our contracts are profitable, and we are up to date with all our payments: to contractors, suppliers, employees and tradies,” Mr Langfelder said.

The email then signed off with the claim that is was “business as usual and our team are ready to assist you”.

However, when the email was then shared on social media, it attracted a slew of angry and laughing emojis, indicating many Aussies remain unconvinced that the firm was in the clear.

They include NSW couple Jessica Snowdon and her husband Steve, who told news.com.au they were terrified by the Metricon situation after forking out $31,500 in an initial deposit to the firm just four weeks ago.

“We were just freaking out [when we saw the news], what’s going to happen?” Ms Snowdon told news.com.au.

“It’s scary because we don’t know whether to pull out or not, if we pull out we still lose our money.”

Founded in 1976, Metricon is the largest player in the sector, employing 2500 Australians with 4000 projects in the pipeline, which is why speculation about the giant’s collapse has sparked panic across the nation.