Embattled recruitment company Transline could be rescued by privately owned Assist Resourcing as it continues preparations for entering administration.
According to Sky News, the controversial recruitment firm at the heart of the Sports Direct workers’ rights debacle could be saved by a subsidy of Russell Taylor Group.
A source close to Transline has stated that a takeover deal is close to being completed, estimating it could be secured as early as next week.
The company oversees a workforce of around 11,000 temporary staff, providing workers for some of the UK’s largest retailers like Sports Direct, Amazon and Asos.
Following a media backlash after the discovery of “Victorian” treatment of workers at Sports Direct’s Shirebrook warehouse, both Asos and Amazon cut ties with the company.
Tighter margins are said to be behind the company’s financial woes, with Transline stating it needs around £6 million of new funding from potential investors. It also reportedly lost £1.2 million last year despite dishing out over £1 million worth of dividends to directors.
Last month Transline issued a notice of intention to appoint administrators, which they have renewed in hopes of securing a deal before falling into administration.
“We have been involved in a number of negotiations, and are now at an advanced stage with one of the parties we have engaged with,” Transline stated.
“We have a clear timeline to complete the agreement with the party in question within the 10 days.”