Billionaire Lindsay Fox appears to be playing a dangerous game of chicken with a formidable and powerful foe – a collective of nine organisations including the big banks, the big supermarkets and Australia Post. But he is doing so from a seemingly weak negotiating position.
Fox’s ownership of Armaguard makes him the king of cash (of sorts). The trouble is cash is going the way of the dodo and Armaguard is a slow motion train wreck that’s ironically run out of money.
Lindsay Fox to the rescue. But Armaguard is not out of danger.Credit: Louie Douvis, Alex Ellinghausen
Now it’s collision time. And while the corporate undertakers may have been turned away, they must surely be on standby.
So dire is Armaguard’s financial position that supermarket giant Coles took a radical position this week of politely turning away Fox’s cash trucks in order that the supermarket chain can conserve the hard stuff over the next week including Easter. Coles had also imposed a cash-out limit of $200 for customers just in case.
Coles didn’t want its cash sitting inside an Armaguard truck on Parramatta Road or the Monash Freeway in the event Fox pulled the pin and placed the company into voluntary administration.
The group of nine organisations (which includes Coles, Woolworths, Wesfarmers, Australia Post, and the four big banks and their umbrella organisation the Australian Banking Association) had given Armaguard until 3 pm on Thursday to accept the bailout package of $26 million – after which it was due to lapse.
But at the eleventh hour Fox refused the offer, deciding instead to use his own resources to ensure its cash transporting subsidiary had a pulse. Coles immediately responded by resuming services with Armaguard.
The $10 million tide-over funding provided by Fox is supposed to last until Armaguard can individually renegotiate contracts with these customers. “Armaguard rejects the timing ultimatum by the [Australian Banking Association]. Armaguard continues to operate its full suite of services and is confident that over the coming months, it will get the business onto a long-term sustainable footing with appropriate support from the industry.”
The billionaire versus the banks: The fight over the death of cash
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28.03.2024
Billionaire Lindsay Fox appears to be playing a dangerous game of chicken with a formidable and powerful foe – a collective of nine organisations including the big banks, the big supermarkets and Australia Post. But he is doing so from a seemingly weak negotiating position.
Fox’s ownership of Armaguard makes him the king of cash (of sorts). The trouble is cash is going the way of the dodo and Armaguard is a slow motion train wreck that’s ironically run out of money.
Lindsay Fox to the rescue. But Armaguard is not out of........
© The Sydney Morning Herald
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