Fashion giant sacks Yorkshire recruiters on the brink of administration
Beleaguered recruitment agency Transline has lost its contract with online fashion giant Asos just one week after it filed a notice intending to call in administrators.
The Brighouse-based agency provided temporary workers for Asos’ Barnsley warehouse and distribution centre. Asos employs around 4,000 staff at the site.
It was at the centre of an investigation by Buzzfeed in September 2016, which exposed what was called “deeply exploitative” working practices at the warehouse, citing Victorian work hours and “excessive” pressure on operatives to fulfill orders.
Asos vehemently denied the accusations,with chief executive of Asos Nick Beighton saying that the allegations were “upsetting to me personally”.
The fashion giant’s warehouse operator XPO has now axed it as an employment provider.
XPO said: “Following the filing by Transline of a notice of intention to appoint an administrator, we decided in conjunction with our customer to terminate the contract with Transline and appoint PMP Recruitment.”
Northampton-based PMP supplies Amazon with temporary staff. Amazon last month cancelled its contract with Transline to supply warehouse staff at five sites, including two in Doncaster.
The news comes just one week after Transline, a £230m-turnover group, announced it was on the brink of administration, filing a notice protecting it for 10 days from legal action from other companies relating to payments.
On Wednesday, the company said: “We have not ceased trading, and continue to have positive conversations with potential sources of investment.
“We are unable to comment at this time regarding specific commercial agreements. We will continue to keep all our employees and customers updated as the situation progresses.”
The company has been in hot water for months, with directors pulled up infront of a committee of MPs regarding working practices at Sports Direct’s Shirebrook warehouse, where Transline also provides staff.
Mike Ashley’s group have been urged to drop the recruitment company, but unlike Amazon and Asos, have not yet done so.
