Coles has resumed Armaguard cash deliveries with the money transit company, following a brief pause this week.
It comes as the grocery giant has reduced money withdrawal limits in supermarkets from $400 to $200, as concerns grow about the future of the currency handling company.
“Coles can confirm that normal cash collection and processing services from Armaguard have resumed,” Coles told 7NEWS.com.au.
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“Customers can continue to pay with and withdraw cash at Coles supermarkets and liquor stores this weekend and ongoing.”
Armaguard, a subsidiary of Lindsay Fox’s Linfox, has been offered a funding boost from a group of big banks and retailers — but it’s understood the company is yet to formally respond.
Coles briefly paused Armaguard cash deliveries due to the evolving situation.
It has also reduced withdrawal limits at supermarkets and liquor stores from $400 to $200 indefinitely, which it says is in line with other major retailers.
“Due to industry-wide challenges with cash movements, we are taking some temporary steps to prepare for disruption to Armaguard services,” Coles said.
Last year, Woolworths reduced its withdrawal limit from $500 down to $200 and introduced a requirement for customers to make a purchase first.
On March 19, the big four banks, Wesfarmers, Coles, Woolworths and Australia Post put a funding offer of about $26 million to Armaguard.
The group wants a response on whether Armaguard accepts the package, which would support the company to continue operations for about six months, by the end of Thursday.
Armaguard approached retailers and banks in late October to request a cash injection to keep providing distribution services after its merger with competitor Prosegur was approved.
Negotiations kicked off in earnest in December, and there have since been dozens of meetings.
There is no expectation for the money to be repaid, but it comes with conditions, including an accountant to provide guidance on how to make the business viable.
Linfox has been approached for comment.
