Family-owned Ron Crouch Transport seeks buyer after entering voluntary administration
A national family truck business founded in 1978 has entered administration with its owner blaming economic pressures and government over-regulation for the devastating decision.
National trucking company Ron Crouch Transport is looking for a buyer after its family owners put the 47-year old business into voluntary administration this week.
In a LinkedIn post yesterday, Executive Director Geoff Crouch announced he had placed the NSW-based business into administration.
“It is with the heaviest of hearts that I have had to take the necessary action of placing Ron Crouch Transport under the control of a Voluntary Administrator,” Mr Crouch said in his post.
Mr Crouch said challenging economic conditions, sustained pressure on freight rates, an ongoing driver shortage and “the never-ending burden of government over-regulation” were factors contributing to his decision to place the business in the hands of administrator HM Advisory.
“The biggest thing, the biggest part from a competition point of view... it’s sham contracting, where you’re getting companies paying drivers with ABNs,” he said.
“And they’re getting a commercial advantage over companies that do the right thing and pay their drivers as a full-time employee.”
“It is becoming an absolute menace and cancer within the industry.”
Founded by Mr Crouch’s parents in 1978, the company employs 120 people at depot and warehouse facilities in Sydney, Melbourne, Adelaide, Brisbane and Wagga Wagga.
Mr Crouch also said over-regulation was one of the main factors keeping drivers out of the industry.
“Why would you want to be a truck driver at the moment?”
“For example, fill out your log book wrong, put a line in the wrong spot. You can lose a week’s wages fine. Simple administration mistake.”
“No other job gets that sort of penalty for making an admin mistake that we all make at some point in our careers.”
Skyrocketing superannuation costs are another issue facing the sector, he said.
“This is the reason people do sham contract and they don’t have to pay workers comp.”
“The amount has doubled in the last three or four years.”
The move by Mr Crouch is the latest casualty in an ongoing crisis in the Australian trucking industry sector which has seen the failures of many long-established freight companies with closures this year have included 77-year old Don Watson Transport and Brisbane-based XL Express, which had 200 staff.
Recent sales have seen trucks valued at $160,000 during Covid changing hands for as little as $20,000.
Mr Crouch said the business will continue to trade while the administrator looks to find a buyer.
“We are most certainly hoping that the administrator will sell it as a going concern.”
“There have already been a significant number of expressions of interest that have been received.”
More Coverage
Originally published as Family-owned Ron Crouch Transport seeks buyer after entering voluntary administration
