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Coles resumes cash deliveries from Armaguard but limits on cash withdrawals remain

Headshot of Remy Varga
Remy Varga
The Nightly
2 Min Read
Supermarket giant Coleshas announced it will halve the amount available to withdraw from its checkouts.
Supermarket giant Coleshas announced it will halve the amount available to withdraw from its checkouts. Credit: Ian Waldie/Bloomberg

Cash collections at supermarket giant Coles will proceed as normal over the Easter long weekend after money transit service Armaguard reportedly received extra funding but withdrawal limits remain in place.

Withdrawals will remain halved at $200 but a Coles spokesperson confirmed regular collection and processing services had resumed.

“Customers can continue to pay with and withdraw cash at Coles supermarkets and liquor stores this weekend and ongoing,” he said.

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Armaguard has rejected an emergency $26m funding deal offered by banks and retailers after refusing to open its books.

Earlier on Thursday it was anticipated Coles would hoard cash over Easter amid fears negotiations would collapse, stopping cash delivery.

Linfox had previously only guaranteed the continued operation of its subsidiary until April 3.

Coles confirmed it will halve its withdrawal limit from $400 to $200 due to “industry-wide challenges with cash movements”.

“We are taking some temporary steps to prepare for disruption to ­Armaguard services,” said a spokesperson.

“Cash transactions continue to be available in all Coles supermarkets and Coles Liquor stores.”

Mr Fox’s Linfox has reportedly enlisted the help of former union powerbroker Bill Kelty, also a former board member of the Reserve Bank of Australia, to represent its interests.

The sticking point in negotiations is that the deal would force Armaguard to reveal its accounts and projections to banks.

The money transit service is understood to be concerned banks would use information on the company’s cash business to shift more customers onto electronic payments.

Nine’s papers report the rescue deal is worth about $26 million.

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