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Money transfer company Armaguard has secured its future for another 12 months after striking a $50m deal with its biggest customers.
The agreement funded by Commonwealth Bank, Westpac, NAB, ANZ, Coles, Woolworths, buns and Australia Postmeans that Armaguard will receive monthly payments in exchange for performance and restructuring requirements.
Armaguard is the sole distributor of notes and coins in Australia, there are fears that the country’s monetary economy will not survive if the company does not.
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On Monday, Transport Workers union national assistant secretary Emily McMillan welcomed the deal, saying 1,400 workers were relieved to have some job security next year.
She also said it was important for “wealthy banks and retailers” to ensure the long-term viability of cash transit services.
“Regional communities and many people in society still rely on cash transactions,” McMillan said.
The deal comes three months after Armaguard rejected a $26 million deal from the Australian Banking Association, the big four banks, Woolworths, Coles and Australia Post, despite being told the company was not financially viable.
Instead, parent company Linfox, owned by billionaire Lindsay Fox, announced it would pour $10 million into the business while Armaguard works to find solutions to its financial problems.
Concerns about the future of Armaguard led Coles to stop cash deliveries to its stores earlier this year, but the supermarket later reversed the decision.
It also reduced the amount customers can withdraw in stores from $400 to $200, but there are no plans to reverse the change.
AAP has contacted Linfox for comment.
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