Explaining the reason for the move, Transline said the notice had been filed to protect the business, while it is seeking to secure inward investment to enable it to continue operations.

In a company statement Transline 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.”

The BBC reports the move gives Transline 10 days to find a solution to its funding problems.

The agency hit the headlines last year when the Department for Business, Energy and Industrial Strategy Committee raised concerns over working practices at Sports Direct’s Shirebrook warehouse. Transline, along with The Best Connection (TBC) supply more than 3,000 agency workers to work for sports retailer Sports Direct in its Shirebrook warehouse.

Working practices at the site came under scrutiny in October 2015 from the BBC's Inside Out programme, under which staff could be fired for accruing ‘strikes’ for spending too long in the toilet, excessive chatting or taking a day off sick, prompting subsequent investigations from Parliament and an internal one from Sports Direct, which resulted in the suspension of the six strikes policy.

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