Refrigerated trucking and storage company Don Watson Transport to be wound up after 77 years
A national freight and cold storage company has sent shockwaves through the trucking industry, announcing its closure after 77 years and leaving 300 people out of work.
A national freight and cold storage company has sent shockwaves through the trucking industry, announcing its closure after 77 years in business.
Don Watson Transport had more than 300 staff and 290 vehicles in its fleet, covering more than 22 million km/year across Australia.
The third-generation family company started in Melbourne as a stock transport company using ex-Army K Series Austins in 1948 and later expanded to build vast refrigerated storage depots in Sydney and Brisbane
Its truck drivers will wrap up their last trips this week.
The Victorian family owned business managed cold storage and refrigerated transport for fruit, vegetables, meat, drinks and other products across all states and territories.
Trucking industry media last week quoted an internal staff memo from managing director Lyndon Watson, confirming the impending closure.
“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,” the memo stated.
“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.”
As at Monday morning, the company was still yet to enter administration.
The announcement of the closure sent shockwaves through the trucking industry, with some taking to social media to express sadness about the news.
In a statement shared with News Corp, Mr Watson said the decision to cease operations was “difficult” for his family.
Drivers made their final collections on Sunday and would be delivering over the coming days, he said.
He added Watson’s Coldstores, its storage business in Sydney and Melbourne, will keep operating as it will be placed on the market for sale.
“The Watson family has benefited from the Australian trucking and warehousing industry over many generations, and we’ve tried to offer back time and effort in kind,” Mr Watson said.
“Thank you for the wonderful support you’ve offered Watsons over the years and we look forward to seeing the industry continue to develop.”
In the company’s most recently-lodged financial report, for the 2023 financial year, it revealed it made a net profit of just $95,355, from $99.9m revenue.
This compared to a $1.2 million loss the year before, from $84.7 million in revenue.
The report showed the company’s cash reserves dwindling steadily in FY22 and FY23.
The company was founded by Mr Watson’s grandfather, GH “Don” Watson in 1948.
It started by carrying livestock to markets between Melbourne, Ballarat and Dandenong.
The founder’s son Donald Watson, eventually took over until his tragic death in 1994.
Mr Watson had a passion for race driving and he fatally crashed during a qualifying session at Bathurst.
His wife, Noelene Watson ran the company until their son and current managing director Lyndon took over.
Company records show Ms Watson is the sole shareholder of the company, which has about 300 employees.
On its website, the company claimed to have about 300 vehicles in its fleet, including 130 line haul prime movers.
Geoffroy Henry, CEO of digital freight management company Ofload said the closure followed the liquidation of another large transporter, Scott’s Refrigerated Logistics, in 2023.
“It’s very big news in this space and will create a capacity crunch in this market,” he said.
“They had a very large fleet.”
He added demand in logistics had slowed, as cost pressures meant consumers were buying less items in supermarkets.
“The cost of goods have increased massively but actually the amount of goods moved, the volume of physical goods moved and bought and so on has reduced.
“For the freight industry, it feels like it’s actually more downhill than flat.
“I think that as an entire industry we have got to be very concerned about the fact that the health of the businesses that are making supply chains and the wider economy work are in a very tough position right now and we need to support them.”
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Originally published as Refrigerated trucking and storage company Don Watson Transport to be wound up after 77 years
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