Lifeline for Sports Direct recruitment firm verging on administration

Embattled recruitment firm Transline has been handed a lifeline after announcing it was on the brink of administration last week.

The company, which has been embroiled in controversies over working practices at Sports Direct’s Shirebrook facility and the Barnsley Asos warehouse, filed a notice last week giving it a stay of execution, which has now been extended.

The initial filing gave the Brighouse-based recruitment giant a grace period of 10 days in which it would be immune to legal action from creditors as it attempted to sort its financial situation out.

That period was due to expire at midnight yesterday (Thursday 4 May) but has now been extended a further 10 days, according to Sky News.

The outlet also reported that directors of the £230m-turnover group had awarded themselves six-figure payouts last year, seemingly unaware of the storm that was about to hit.

More than £1m was reportedly paid last year to directors in the form of dividends, loans and a transfer of shares, despite a funding squeeze following a seven-figure annual loss.

The company suggested last week that a new backer could be found, though it is unclear who it may be, and the latest deal gives directors room to maneuver as they attempt to negotiate a deal.

The company was founded in 1989 but only entered the limelight relatively recently following the exposure of ‘Victorian’ working conditions at the Sports Direct facility in Shirebrook, where it employed thousands of temporary workers for the retailer.

This was followed by reports into employment practices at the Asos Barnsley factory, which Transline also supplied. Amazon reportedly cancelled a major contract with the recruiter earlier this year.