BDS Group Managing Director Harry Rathour has shared his account of why the Melbourne-based company he started from scratch in 2014 was placed into liquidation last week.
Six entities under the group – BDS Express Trading, BDS Tyres, BDS Express Services, BDS Express Operations, BDS Express Holdings and BDS Assets – entered liquidation on Tuesday, November 11. It is unclear how much creditors are owed and how many staff have been impacted.
In a statement and video posted to his company’s social media pages, the former truckie stressed the collapse of the national logistics company and its entities came as a shock and has drained his personal finances dry.
“I want to make it absolutely clear: this liquidation was not pre-planned,” Rathour said.
“If that were the case, I would never have invested all of my personal reserves back into the company over the past year. I did everything in my power to save the business.”
Rathour said the financial collapse began back in November last year when BDS unexpectedly lost its main steel contract, a contract the company held for 10 years.
“After another operator undercut us by 25 per cent,” he said. “This was a major and immediate blow to our revenue.
“At the same time, another significant client stopped paying us for linehaul work valued at $350,000-$400,000 per month. We continued doing this work in good faith, expecting payment once the business was formally acquired, which eventually occurred in June 2025.
“However, the lack of payment during that period created a massive cashflow gap that became increasingly difficult to manage.”
Rathour said these two events alone would have been enough to put any transport operation under severe stress.
“But further financial pressure continued to build through additional unexpected claims and the collapse of another business we had supported, making recovery impossible despite my best efforts.
“For months, I worked tirelessly to stabilise the business and meet our commitments. I used every dollar of my reserves to keep operations running.
“I fought daily to protect our staff, our customers and the reputation I have built over many years.”
After facing enormous pressure and realising the situation could no longer be reversed, Rathour said the decision was made to enter voluntary liquidation on November 10.
“It was the most difficult decision of my career, and it has left me personally with nothing.
“I also want to address the hurtful rumours circulating: I have not taken money from anyone, I have not run away, and I have not planned this outcome.
“Any suggestion that I intended for this to happen is completely false.”
Rathour said his focus now is ensuring continuity of service for customers.
“I am working closely with trusted people around me to make sure our customer base is supported through this transition.”
In an emotional video message he shared with followers, customers and supporters, Rathour said he acknowledged the “loophole” in the law that allowed same companies to just start up again with a different name and directors, also known as phoenix companies.
But he was keen to stress that he never entertained following suit.
“It’s a very common practice and has been going on for a while, but I can’t let this burden on my heart that I am one of them as well.”
Rathour said he’s now planning legal action to address the “conduct and events” that led to the company’s collapse.
“While I cannot name any parties publicly at this time, the matter will be pursued through the proper legal channels.”
An emotional Rathour said the last week has been the most challenging of his life. The only son in the family, Rathour is also caring for his sick father who has cancer and lives with him.
“To everyone who has reached out with messages of support – thank you. Your kindness has meant more than you know during this extremely difficult time.
“I remain committed to honesty, integrity and rebuilding from here.”