Armaguard, a cash transport company owned by trucking magnate Lindsay Fox, turned down a $26 million financial lifeline proposed by leading Australian companies. Despite the offer made by major banks, supermarkets, Australia Post, and retailer Wesfarmers, Armaguard declined to accept the package, opting to find its own solution to address financial challenges in the industry. The company's refusal to open its books, a condition of the rescue deal, led to the rejection, causing concerns about its ability to continue operating.
The decision by Armaguard to reject the lifeline comes after a meeting chaired by Reserve Bank governor Michele Bullock, where the urgency of finding a resolution for the company was emphasized. With supermarket giant Coles temporarily pausing its use of Armaguard services for cash collection and delivery, concerns about the company's stability grew. Coles clarified that while it paused services temporarily, it was not transitioning to cashless transactions and had resumed its services with Armaguard following the company's decision.
Prior to the collapse of the deal, former ACTU secretary Bill Kelty represented Armaguard at discussions, highlighting the company's efforts to navigate its financial challenges. Despite Armaguard's merger with Prosegur last year, the increase in cashless transactions has made transporting banknotes and coins less profitable, contributing to the company's struggles. As Armaguard faces insolvency concerns, the Transport Workers Union (TWU) is engaged in ongoing discussions to address the situation and ensure the safety and well-being of the company's workers, particularly its armoured truck drivers.