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
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.
