The Australian Banking Association acknowledges Linfox Armaguard (LFA)'s statement that they won't be taking up the offer of financial support from a collective of banks, retailers and supermarkets.
We welcome Armaguard's commitment that they will continue to operate and have secured funds from their parent company to maintain their full suite of services.
Australia's largest users of cash were approached by Armaguard in October 2023 and told by its representatives the business was not financially viable in its current form and that they needed financial support.
Since that time the banking sector, major retailers and Australia Post have engaged in good faith. This included seeking authorisation from the ACCC to agree an industry response.
The Reserve Bank of Australia convened a series of roundtables with representatives from Treasury, the ABA and the banking sector, the major retailers and Armaguard to respond to the financial distress advised by them.
After several rounds of negotiations a bail out offer was made to Armaguard last Tuesday 19 March offering $26m, without any repayment requirement, for the next six months.
This generous cash offer was subject to a number of reasonable conditions:
1. to ensure the emergency funding is provided for its intended use
2. to make sure customers continue to be provided with cash-in-transit services
3. to share information about the company's finances and operations to enable all parties to explore ways to support the ongoing viability of Armaguard.
This offer of financial support was made in good faith to ensure the last major cash-in-transit company can continue to serve its customers.
However, it is entirely up to Armaguard to decide how to fund their business and the decision of the parent company Linfox to fund them is a welcome development. The banking sector remains committed to ensuring cash is accessible for customers.
