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Agency files for insolvency following Sports Direct fallout

The employment agency caught up in the Sports Direct employment scandal has filed for corporate insolvency.

Transline issued its “notice of intention of appointing administrators” at a court in Leeds in April.

A notice of intent helps businesses by temporarily halting existing or pending creditor action for 10 days, after which the company must start administration proceedings.

The agency said it was suffering from “tighter margins in the recruitment industry”, but would protect its “business, employees and customers”.

In a statement, a Transline spokesperson said: “We are close to securing inward investment that will allow us to drive forward with continued growth and infrastructure development.

“We expect to hear more regarding potential trading investments imminently.”

In 2015, the group were involved in a Sports Direct scandal after an investigation revealed that the retail giant’s workers were being paid less than the minimum wage and were subject to controversial disciplinary measures.

Asos, the fashion retailer, also parted ways with Transline following the incident.

The Transline statement continued: “[We] have lodged the ‘notice of intention’ to protect the business, our employees and our customers as we complete this process.

“The welfare of our staff and our relationships with our customers are of paramount importance, and we are continuing our service and operations as normal. We expect to hear more regarding potential trading investments imminently.”

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ELS Legal is an international law firm based in London with more than 50 partner offices across the world. As part of the Cathay Associates global legal network, we are the first choice law firm for a number of British businesses and overseas clients.

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