Sports Direct agency faces threat of collapse unless funds are secured

Workers at Sports Directs Shirebrook warehouse supplied by Transline were found to be earning less than the minimum wage. Photograph: Joe Giddens/PA

Transline Group, based in Brighouse, West Yorkshire, filed a notice of its intention to appoint administrators last week.

The move means the company has 10 days to raise millions of pounds to keep it afloat or face the threat of collapse.

The loss of a key contract with Amazon is understood to be one of the factors which led to a downturn in its fortunes.

A Transline spokesperson said: “The company has suffered as a result of a continued move to tighter margins in the recruitment industry.

“We are close to securing inward investment that will allow us to drive forward with continued growth and infrastructure development, and 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.”

Deloitte is understood to have been lined up to handle the administration.

Transline has faced criticism from MPs over the employment practices it uses on behalf of clients, including zero tolerance and zero hours contracts.