Pon has decided to close Pon Rental operations in Denmark and Sweden, the company, which operates Cat Rental Stores in several countries, said. Pon said the poor performance of the company in recent years because of difficult market conditions is the reason for the closing.

“Our desire to deliver solutions to our customers has not developed as desired because of the economic circumstances in the rental market,” said Nils Macheel, rental manager of Pon Rental Denmark. “Prices are simply too low to make the lease to a viable business. We see no evidence in the rental market that the trends will change, and therefore we have abandoned hopes for a turnaround in the business."

Pon said it still supports short-term rental as a viable part of its business, but not in the current market.