Coles halves cash out limit as money delivery service in turmoil

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Services from Australia's primary physical money transit company have resumed after Coles halved it's cash out limit ahead of Easter.

Coles had reduced their cash out limit from $400 to $200 amid the risk that Lindsay Fox-owned Armaguard could reduce services over the long weekend.

The major supermarket previously said it would pause all Armaguard delivery services until April 5 but those services have resumed.

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Armaguard, the nation's main cash transportation provider, is facing insolvency

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"Coles can confirm that normal cash collection and processing services from Armaguard have resumed," a spokesperson said.

"Customers can continue to pay with and withdraw cash at Coles supermarkets and liquor stores this weekend and ongoing."

Armaguard has rejected a $26 million short-term lifeline from the big four banks, Coles, Woolworths, Wesfarmers and Australia Post, according to the Australian Financial Review.

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Instead, Armguard has secured $10 million in additional funding from Linfox.

9News understands Coles is working with Armaguard and other industry partners to find a solution.

Their cashout limit is in line with other retailers.