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- The Armaguard rescue agreement has broken down.
The Armaguard rescue agreement has broken down.
Several of Australia's largest corporations offered Armarguard a $26 million lifeline to keep the cash transport company afloat, but Armarguard turned it down. Lindsay Fox, the owner of Armaguard, a trucking company, had until today at the latest to decide whether to accept or reject a financial lifeline intended to prevent bankruptcy and maintain cash flow for large companies.Together with Australia Post and the four largest banks, a group of significant retailers, including Coles, Woolworths, and Wesfarmers, are negotiating with Armaguard.Under the direction of the Australian Banking Association (ABA), the group has pushed for a $26 million emergency funding package to keep the cash distribution service operating.
In a statement from Armaguard Group chief executive, Mick Cronin said :
"Armaguard confirms it is working constructively with all its customers, including its retail customers, banks and other key stakeholders regarding both short term and long term financial solutions for the industry to remain sustainable.
"Armaguard continues to operate its full suite of services and is confident that over the coming months, it will get the business onto a long term sustainable footing with appropriate support from the industry."
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Coles, the massive supermarket chain, plans to hoard cash over the Easter weekend in response to growing concerns about cash availability. Coles has resumed the normal cash and processing services with Armaguard However, Coles has made it clear that its consumers will still be able to make cash transactions at all supermarkets and liquor stores, as well as have access to physical currency with a limited on cash withdrawals to $200 per person.
Meanwhile, The TWU has called on the Big Four banks to pay up to keep cash moving in Australia, after years of squeezing the industry.
TWU National Secretary Michael Kaine said: Banks have been squeezing this industry for years. That’s bad enough when the industry is thriving, but at a time of crisis there is no room for penny-pinching on transport costs. This is not about a lifeline to a struggling transport operator, it’s about client responsibility, and banks paying what it takes to keep cash in service – something Australia needs.”.
“The primary expectation of banks is to keep money safe, but they are failing to do so. Billions in profits while holding out on a long-term solution to the cash-in-transit industry is an unacceptable betrayal of the community” ,He added.
“Cash-in-transit workers do an important job, but it is a dangerous job. Armed hold-ups and deaths in the line of duty are known in this industry. It’s critical for the safety and wellbeing of these transport workers that this is resolved quickly with a view to the future. With the public holiday approaching, workers need certainty and peace of mind.” Kaine says.
He said The TWU is engaged in ongoing discussions with Armaguard to protect workers. The critical matter at hand is for banks to pay their fair share.
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