Norwegian mail distribution in Denmark to close down

The Norwegian company Bring Citymail Danmark has started a process to terminate its mail distribution operations in the Copenhagen area, after it has lost a total of NOK 500 in three years.

Negotiations are now being started to terminate the mail distribution operations and dismiss 440 employees.

Bring Citymail in Denmark is owned by the Norwegian Postal Service (NP) and has focused aggressively on mail distribution in the Copenhagen area as a challenger to Post Danmark. Its start-up was affected by the financial crisis and economic slump and Bring Citymail Danmark has also had a value added tax (VAT) disadvantage of 25 per cent compared to its main competitor, Post Danmark, which is exempt from paying VAT.

“We have not succeeded in making the mail distribution operations in Denmark profitable, and we apologise for this to Danish customers and companies that wanted an alternative,” says NP CEO Dag Mejdell.

The plans to discontinue Bring Citymail’s operations in Denmark do not affect the operations in Sweden. Although the Swedish market is also hard hit by the financial crisis, Bring Citymail in Sweden does not have a VAT disadvantage compared to Sweden’s Posten.

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