Major trucking firm collapses as multimillion-dollar debts rock transport industry

A wave of transport company collapses has left creditors facing tens of millions in unpaid debts, with the latest casualty wound up this week for unpaid tax.

Multiple trucking companies have gone into liquidation this year.

A Sydney trucking company has skidded into liquidation after failing to pay its tax, as the multimillion-dollar debts of two other collapsed transport firms have been revealed.

Freight Express Australia was wound up in the Federal Court of NSW this week after action by the ATO.

Court records show the company did not file a defence in the matter, which was launched by the tax office for an unknown amount of overdue tax in September.

Andrew Scott and Melissa Humann of Teneo Financial Advisory were appointed liquidators of Freight Express after the hearing on November 21.

The company and its liquidators have been contacted for comment.

The collapse is the latest in a flurry of transport company failures, including XL Express, a transport and logistics company which worked from depots across Australia for 35 years.

XL went into voluntary administration in July, then into voluntary liquidation the following month.

Documents lodged by liquidator Kelly-Anne Trenfield on October 30 showed XL Express owes at least $31.5m to unsecured creditors and staff.

XL Express closed abruptly after operating for 35 years. Image: Facebook

The tax office has lodged debt claims worth almost $3.5m, the documents said, while staff are owed $5.3m and the debts to secured creditors are unknown.

The report said the company had run at a loss for at least the past three years, and had been locked out of their Sydney premises in June this year over unpaid rent.

XL Express had depots in every state of Australia except Tasmania and had 187 staff when it collapsed.

The liquidators say there are not enough assets to cover the debts and that the liquidation itself would cost $1m.

Meanwhile, Brisbane trucking company Newnham Trucking, went into administration in September after 23 years trading.

Documents filed with ASIC show the ATO was owed $493,000, while other debts included $25,912 to Harvey’s Towing and $12,320 to Taich Transport.

A full creditor list is yet to be released publicly.

Newnham Trucking in Brisbane is in liquidation.

National freight and cold storage company Don Watson Transport sent shockwaves through the trucking industry, when it announced its closure in June after 77 years.

It had more than 300 staff and 290 vehicles in its fleet, covering more than 22 million km/year across Australia.

Don Watson’s companies remain registered – without administrators appointed – despite the permanent closure.

Some in the industry have demanded urgent government action, saying illegal practices by some industry players had driven more scrupulous operators into financial strife.

Originally published as Major trucking firm collapses as multimillion-dollar debts rock transport industry