Two hundred jobs have been axed after a major trucking company collapsed and went into liquidation with more than $40million in estimated debts.
Transport and logistic company XL Express had been in business for 35 years and operated along Australia’s east coast, delivering freight and packages between Sydney, Melbourne and Brisbane.
The company went into voluntary administration in June after it was locked out of its Smithfield premises in south-west Sydney due to unpaid rent.
Its fate was sealed when the company went into liquidation on Monday.
More than a dozen associated companies that operated under the XL Express group were also wound up.
The collapse sent shockwaves across a number of industries that the company did business with as concerns grow over shipping orders going unfulfilled.
Manheim Auctioneers was enlisted to offload the company’s fleet of 193 vehicles, which has been sold off.
XL Express still owes up to $41.9million, with $5.3million owed to 200 staff and $3.4million to the tax office, administrators reveal.
XL Express has gone into liquidation weeks after it went into voluntary administration
The largest chunk of debt, around $18.9million, is owed to secured lenders like NAB, Judo Bank and ScotPac, the administrators’ report reveals.
The massive debt could rise even higher with multiple injury compensation claims lodged by staff yet to be processed by insurers, the administrators noted.
The expected returns for creditors under the liquidation were unknown, the administrators’ report added.
Many XL Express clients remain in limbo, not knowing whether they will be repaid.
‘This is a disaster. We have outstanding customer orders, and now they’re stuck in limbo,’ one told Daily Mail in June.
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.
More than 14,000 businesses went under in financial year 24-25, a new record
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,’ he said.
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.
