German parcel and letter delivery service Deutscher Versand Service (DVS) and its subsidiary Xendis GmbH have filed for insolvency in a move attributed to competitive pressures and tax disadvantages.
Düsseldorf – Deutscher Versand Service (DVS), a major competitor to Deutsche Post, and its subsidiary Xendis GmbH initiated insolvency proceedings in self-administration on February 24, according to a company statement. The firms cite the challenging competitive landscape in the German postal market, rising personnel costs, and the tax advantages enjoyed by Deutsche Post as key factors contributing to their financial difficulties.
Business to Continue During Restructuring
DVS intends to restructure its operations through the self-administration process. “We have deliberately chosen this step to stabilize our companies in an orderly and legally defined manner and to strategically realign them,” said Michael Mews, managing partner of DVS. Markus Kier, of the law firm Piepenburg Rechtsanwälte, has been appointed as provisional administrator by the Düsseldorf District Court.
“Our business operations will continue uninterrupted during the insolvency proceedings,” Mews emphasized. DVS serves large-volume senders, including banks, insurance companies, and energy providers, holding an estimated 30% market share in letter volume.
