Coles has limited the amount of cash customers can withdraw as some stores face going cashless this Easter long weekend.
Ongoing negotiations between secure cash delivery company Armaguard and the country’s largest banks and retailers over lifeline funding has seen Coles take a cautionary approach to the cash it currently holds.
The grocery giant has paused all cash delivery services until April 5 over fears Armaguard could enter administration, leaving its cash stuck in the company’s trucks.
Due to the shortage of cash available, Coles has limited the amount customers can withdraw to $200 to preserve the cash float in its tills.
A ‘cash process update’ memo was sent to Coles staff across Australia warning its grocers and liquor stores could temporarily become ‘card only’ between March 27 and April 5.
Coles will limit the amount of cash customers can withdrew to $200 over the Easter long weekend
Some Coles supermarkets and liquor stores could become card only due to cash supply issues
The message told staff they are to place ‘card only’ signs at checkouts if the store’s cash reserves become low.
Employees were also advised to consolidate the use of cash to one register while cash collections from Armaguard are paused.
According to the memo, customers should be reminded prior to starting their transaction that cash may not be used.
Workers were also given a response to use if a customer questions why cash is not being accepted.
Staff should reply: ‘Our change reserves have been impacted by a decline in cash transactions, along with industry wide challenges with cash movement services. All card purchases are still accepted.’
The memo was specifically sent 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 transitioning to cashless transactions,’ Coles said.
‘Due to industry wide challenges with cash movements, we are taking some temporary steps to prepare for disruption to Armaguard services.
‘Cash transactions continue to be available in all Coles supermarkets and Coles Liquor stores.’
A ‘cash process update’ memo (pictured) was sent to Coles staff across Australia warning its grocers and liquor stores could temporarily become ‘card only’ between March 27 and April 5
The news comes as Armaguard’s owner, Linfox, engages in negotiations for a $26million lifeline funding package
The news comes as Armaguard’s owner, Linfox, engages in negotiations for a $26million lifeline funding package, citing declining cash transactions across the economy as the reason for its financial struggles.
The big four banks, Coles, Woolworths, Wesfarmers and Australia Post have offered the logistics company an ultimatum for Armaguard to either accept or deny their funding offer by close of business on Thursday.
Armaguard has reportedly delayed accepting the deal due to the Reserve Bank of Australia’s demand it make its accounts and projections available to banks so they can determine how much funding it needs.
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Read more at DailyMail.co.uk