Coles has limited the amount of cash customers can withdraw as some stores are unable to accept cash payments this Easter long weekend.
Ongoing negotiations between safe money delivery company Armaguard and the country’s biggest banks and retailers over lifeline financing have seen Coles be cautious with the cash it currently holds.
The supermarket giant has suspended all cash delivery services until April 5 amid fears Armaguard could fall into administration, leaving cash stuck in the company’s trucks.
Due to the cash shortage, Coles has limited the amount customers can withdraw to $200 to preserve cash in the tills.
A ‘cash process update’ memo was sent to Coles staff across Australia, warning that grocers and off-licences could temporarily become ‘card only’ between March 27 and April 5.
Coles is limiting the number of cash payments customers can take over the Easter long weekend to $200
Some Coles supermarkets and off-licences could only operate by card due to cash supply issues
The notice told staff to place “card only” signs at checkouts if the store’s cash reserves become low.
Employees were also advised to consolidate their use of cash into one till, while fundraising at Armaguard is paused.
According to the memo, customers should be reminded before beginning their transaction that cash should not be used.
Employees also received an answer to use if a customer wonders why cash isn’t accepted.
Staff should respond: “Our change reserves have been impacted by a decline in cash transactions, along with industry-wide challenges in cash handling services. All ticket purchases are still being accepted.”
The memo was sent specifically to Coles Liquor employees, including Liquorland, Vintage Cellars and First Choice.
Coles told Daily Mail Australia the temporary measure was due to “industry-wide challenges” with cash movements across the country.
“We are not moving to cashless transactions,” Coles said.
‘Due to industry-wide cash challenges, we are taking some temporary steps to prepare for disruption to Armaguard services.
‘Cash transactions remain available in all Coles supermarkets and Coles off-licences.’
A ‘cash process update’ memo (pictured) was sent to Coles staff across Australia, warning that grocers and off-licences could temporarily become ‘card only’ between March 27 and April 5.
The news comes as Armaguard’s owner Linfox continues negotiations over a $26 million lifeline financing package
The news comes as Armaguard’s owner Linfox is negotiating a $26 million financing package, citing declining cash transactions across the economy as the reason for its financial troubles.
The big four banks, Coles, Woolworths, Wesfarmers and Australia Post, have presented the logistics company with an ultimatum to Armaguard to accept or reject their financing offer by the end of the business day on Thursday.
Armaguard reportedly delayed acceptance of the deal due to the Reserve Bank of Australia’s demand that it make its accounts and projections available to banks so they can determine how much financing it needs.