Two hundred jobs have been axed as a major trucking company that had been in business for more than three-decades has plunged into liquidation with more than $40million in estimated debts.
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.
The closure has sent shockwaves across a number of industries that the company did business with as concerns grow over shipping orders going unfulfilled.
XL Express owes up to $41.9million, with $5.3million due to 200 ex-staff and $3.4 million to the tax office, administrators reveal.
The largest chunk of debt, around $18.9million, is owed to secured lenders like NAB, Judo Bank and ScotPac, the administrators’ report reveals.
Before collapsing, the group enlisted Manheim Auctioneers to offload its fleet of 193 vehicles, while administrators say several injury claims from staff are still 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.
The trucking industry has been under pressure in recent years as global tensions cause an increase in fuel prices, which is combining with labour shortages and increased government regulation.
Scott’s Refrigerated Logistics also collapsed in 2023, as did by Austrans Container Services in 2024.
Managing Partner of WA Insolvency Solutions, Jimmy Trpcevski, said he’s seen an increase in insolvency appointments and inquiries from transport operators.
‘Businesses are being squeezed from every direction, whether that’s rising costs, labour shortages, or compliance pressures. Margins are incredibly thin.’
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.
