A recruitment firm caught up in the row over pay for workers at Sports Direct has submitted court documents preparing it for insolvency.

Brighouse-based Transline, which has supplied agency workers to the retail giant, said it was close to securing investment to develop the business, but has lodged a Notice of Intention to protect its business.

Transline and a second recruitment agency, the Best Connection, were caught up in the controversy over pay and working conditions at retailer Sports Direct’s warehouse in Shirebrook, Derbyshire.

A Transline spokesman 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.”

Unite assistant general secretary Steve Turner said: “The current uncertainty surrounding Transline’s future is yet more evidence of the need for Sports Direct to wean itself off its over reliance on temporary agency workers at its Shirebrook warehouse.”