An emergency funding package was offered to Armaguard by the big banks and major Aussie retailers.
👉 Background: Armaguard, the Australian cash handling and transport company acquired its main competitor last year. But, just months after that deal closed, Armaguard admitted to experiencing heavy financial losses.
👉 What happened: Last week, an emergency funding package was offered to Armaguard by the big banks and major Aussie retailers, to make sure Armaguard keeps operating while it works out a sustainable long term solution.
👉 What else: As society continues to go cashless, there has been a massive reduction in demand for cash deliveries.
💡When highly interconnected companies, like those in the transport industry, face problems, the knock on effects can be widespread.
💡Banks, retailers, and regulators are worried—if Armaguard stops delivering banknotes and cash is suddenly not available, some bank customers may question the safety of their bank deposits. This would impact the broader financial system.
💡Despite the reduced need for cash in society, cash itself is still important for some members in the community. And, it's actually federal government policy that cash should be made available to those who wish to spend with it.
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