Major Australian transport company goes bust
Share this @internewscast.com

Two hundred positions have been eliminated as a prominent trucking firm, which had operated for over thirty years, has fallen into liquidation with debts estimated at more than $40 million.

Transport and logistic company XL Express had operated along the east coast, delivering freight and packages between Sydney, Melbourne and Brisbane.

It plunged into voluntry administration in June, before going into liquidation in August. 

This closure has caused ripples through various industries associated with the company, heightening worries about the possibility of unmet shipping orders.

XL Express owes up to $41.9 million, with $5.3 million due to 200 ex-staff and $3.4 million to the tax office, administrators reveal. 

The largest chunk of debt, around $18.9 million,  is owed to secured lenders like NAB, Judo Bank and ScotPac, the administrators’ report reveals. 

Prior to its downfall, the company engaged Manheim Auctioneers to liquidate its fleet of 193 vehicles, while administrators report that numerous staff injury claims are still pending with insurers.

Speaking to Daily Mail Australia, a client of XL Express said they had been left in limbo.

XL Express has collapsed into voluntary administration after running for 35 years

XL Express has collapsed into voluntary administration after running for 35 years

More than 14,000 businesses went under in financial year 24-25, a new record

More than 14,000 businesses went under in financial year 24-25, a new record

‘This is a disaster. We have outstanding customer orders, and now they’re stuck in limbo,’ they said. 

XL’s demise follows just weeks after the collapse of another truck company Don Watson Transport. 

After running for more than 77 years, that company ceased operating in June. 

In recent years, the trucking industry has faced challenges due to global tensions leading to a rise in fuel prices, coupled with labor shortages and increased government regulations.

Scott’s Refrigerated Logistics also collapsed in 2023, as did by Austrans Container Services in 2024.

Jimmy Trpcevski, Managing Partner of WA Insolvency Solutions, noted an upsurge in insolvency appointments and inquiries from transportation providers.

‘Businesses are being pressured from all angles, be it rising costs, labor shortages, or compliance demands. Margins are extremely tight.’

Don Watson Transport covered an estimated 22million kilometres per year and operated depots in Sydney, Brisbane, Melbourne, and Wodonga.

It also held coldstore facilities in Sydney, Melbourne, and Wodonga. 

The group’s 140 trucks and 170 refrigerated trucks will be sold off, according to Beef Central.

Managing director Lyndon Watson confirmed the closure to staff in a memo. 

‘Due to current economic conditions, the Don Watson Group of companies has made a definite decision to leave the warehousing and road transport industries,’ the memo read.

‘We understand that this may come as a shock but we have formed the view that is simply no longer possible to continue to operate.

‘To be clear, all employees will be impacted by this decision.

‘All employees (that are made redundant) will receive all of their entitlements in full in accordance with the terms of relevant legislation and enterprise agreements.’ 

Financial year 2024-2025 was the worst on record for insolvencies, with 14,105 businesses going under, up 26.8 per cent from the last financial year. 

Share this @internewscast.com
You May Also Like

Journalist Criticizes Police for Failing to Assist During Protester’s Assault

A reporter who was allegedly attacked by a savage protester outside a Portland ICE…

Sculpture by the Sea Employee Alleges He Was Fired

A sculpture installer who sustained facial injuries while working for the renowned…

Kevin Franke Shares Engagement News Amid Ex-Wife Ruby’s Incarceration

Ruby Franke’s ex-husband has announced he is engaged just six months after…

Analyzing the Economic, Legal, and Security Risks of State AI Legislation

Artificial intelligence is leading what seems to be a new industrial revolution.…

Demi Lovato’s Ex Detained on Domestic Violence Charges Following Shocking Video Release

Demi Lovato’s former fiancé Max Ehrich has been arrested in Florida over…

Nicole Kidman Discusses Taking Risks During Keith Urban Divorce Rumors

Nicole Kidman is discussing ‘taking risks’ and reflecting on past mistakes in…

Starmer Praises Trump’s Efforts for Peace in Gaza Deal

Sir Keir Starmer has praised the historic agreement between Israel and Hamas…

Jennifer Aniston Shares Her 20-Year Journey to Motherhood

Jennifer Aniston has revealed she endured a 20-year secret battle to have a…

Kate McCann describes the stalking trial as the ‘breaking point’ for her family

A Polish woman charged with stalking after she claimed to be the…

Renowned lawyer for John Gotti, Bruce Cutler, passes away at age 77

Criminal defense attorney Bruce Cutler, whose courtroom infamy was eclipsed only by…

Revealed: New Owner of Michelle Mone’s £18m Belgravia Residence

Michelle Mone’s luxury Belgravia London townhouse has been purchased by a racing driver…

Victoria Beckham Hosts Intimate Gathering to Celebrate Netflix Documentary

It was the night Victoria Beckham had always dreamed of.  Even though…