Armaguard rejects multi-million dollar rescue package, amid concerns over country-wide cash shortage

Cash transport company Armaguard has rejected a multi-million dollar lifeline, among mounting concern over its viability.

Armaguard had been given until the end of Thursday to either accept of reject the $26 million rescue package proposed by major banks, supermarkets Wesfarmers and Australia Post.

They are concerned that if the company was to collapse, it would create a major cash shortage across every sector, due to it having a near monopoly over the distribution of coin and note in Australia.

The uncertainty around the companies future has lead to supermarket giant Coles halving its withdrawal and put a stop to cash deliveries.

It follows warnings from Armaguard last year that it was running at a loss, due to the steep drop in cash usage, which has dropped to just 13 per cent of all transactions.