Online fashion giant ASOS has followed Amazon’s example by terminating its contract with controversial employment agency Transline.
The agency, which was embroiled in the controversy over pay and working conditions at Sports Direct‘s warehouse in Shirebrook, also provided temporary workers for ASOS’s Barnsley warehouse.
ASOS’s warehouse operator XPO Logistics confirmed it had terminated its contract with Transline after it lodged a “notice of intention of appointing administrators” to the court last week.
The notice is a device that gives secured creditors a heads up there is a chance of an administration process while protecting the business from action by creditors for 10 working days.
“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,” XPO said.
XPO said the employment of workers at Barnsley and site operations will continue as normal.
Transline 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.”
In March, Amazon also severed ties with Transline after routine review, according to reports.
ASOS’s decision to follow suit comes a month after its chief executive said conditions at the Barnsley warehouse were “great”, with no issues to resolve despite concerns raised over working practices.