Bring CityMail bows out of postal market in Copenhagen after incurring 500 million kroner loss

One of the largest competitors to the national postal service Post Danmark has folded, putting 440 employees out of work.

Bring CityMail, owned by Norwegian postal service Posten Norge, began operating in Copenhagen in 2007.

The company targeted the industrial postal sector, but attributed its downfall to the financial crisis and unfair competitive practices.

According to Bring CityMail, the company was subject to 25 percent VAT on letters, unlike Post Danmark, which is VAT free.

‘It wasn’t possible for us to succeed in having a cost-effective mail distribution system in Denmark and we apologise to all the Danish customers and companies that had wanted an alternative,’ said Dag Mejdell, chief executive of Posten Norge.

The company had invested 500 million kroner in the Danish operation, but is cutting its losses and winding up deliveries as of January next year.