Telstra Takes Retailers Down + $389M Payout Following Collapse
NSW retailers who were hard hit by COVID-19 shutdowns have been forced to demand ‘Cash Only’ after their credit card machines were taken out at the weekend by another Telstra outage, this is the same carrier that is facing having to pay out over $389 Million following a recent business collapse.
Traders on Manly Corso in NSW were forced to put up signs demanding cash only claiming that their electronic trading network had been down for 24 hours.
Retailers told ChannelNews that they had “no idea” when the credit card machines would be returned to normal service.
They said that more than 50% of their customers did not have cash and that they had lost sales due to the outage.
It’s also been revealed that Telstra has been caught up in the collapse of Greensill Capital and could be chased down by banks and insurers to pay tens of millions of dollars of bills sold to Credit Suisse’s supply chain finance funds.
Documents obtained by The Australian Financial Review show Telstra accounted for $390 million, in assets in Credit Suisse’s Nova “investment grade” supply chain finance fund as of January 29.
They claimed that Telstra’s treasury team is understood to have spent the past week reassuring suppliers that have been using the early payment schemes the telecoms group offered through fintech group Taulia, which partners with Greensill to buy invoices.
Telstra has told suppliers that it will use cash from its own balance sheet or other sources to make sure they get the money they need so they are not hurt by Greensill’s implosion.
“Our suppliers are not impacted by this situation,” a Telstra spokesperson said. “Invoices submitted to Telstra have been, and will continue to be, paid by their due date.
“We continue to work with our suppliers to ensure their invoicing to us is up to date and they have the funds they need when they need them.”