Cash to stay king after banks and retail giants agree $50million bailout deal to save Armaguard

Cash will continue flowing through Australia after a $50 million deal was struck between Armaguard and major banks and retailers, to ensure its services are easily accessed for at least another 12 months.

The agreement is set to be formally announced on Monday ahead of the July 1 delivery of the massive handout.

Australia's big four banks - ANZ, CBA, NAB and Westpac - teamed up with the four of the largest retailers in Wesfarmers, Coles, Woolworths and Australia Post to help the cash transport distributor stay in business.

The financial injection comes after Armaguard's parent company, Lindsay Fox-owned transport and logistics giant Linfox, rebuffed a $26 million emergency funding lifeline in March from the same group helping it out now.

It's understood the deal will be submitted to the competition regulator for approval on Monday.

The funding is reportedly contingent on Armaguard agreeing to efficiencies and cost savings under the agreed bailout conditions.

TWU National Assistant Secretary Emily McMillan said there are about 1400 workers employed by Armaguard to move cash around the country who have had to deal with the uncertainty of the business' future over recent months.

'This deal is a welcome relief to our members who have faced months of uncertainty and troubling headlines about the future of their employer,' she said

Ms McMillan said the TWU was calling on banking clients to pay up to keep operations going.

'While this news brings optimism of job security for the next year, wealthy banks and retailers must ensure the long-term viability of cash-in-transit operations by stopping the squeeze on transport contracts for a service our community needs,' she said.

'Regional communities and many in society still rely on cash transactions. It is a dangerous job to move money around this country, with armed hold-ups and workplace deaths tragically known to the industry.

'Cash-in-transit operations and drivers must be paid appropriately to avoid additional pressure to cut corners in safety to remain financially viable.'

More to come