Asos has terminated its contract with Transline, piling further pressure on the controversial employment agency.
The etailer, which used Transline to manage temporary workers at its Barnsley warehouse, has ripped up its contract with the firm and appointed PMP Recruitment in its place.
The move, first reported by BuzzFeed, comes just weeks after Transline filed a notice of intention to appoint administrators.
Transline, which also staffs Sports Direct’s largest warehouse in Shirebrook, came under fire from MPs when warehouse practices at Mike Ashley’s business were investigated last year.
The firm receives around £20m a year from Sports Direct to supply warehouse workers, although MPs have urged the business to cut ties with Transline.
It has already lost another high-profile contract with etail titan Amazon.
Asos’s warehouse operator XPO Logistics confirmed in a statement that it had terminated its agreement with Transline.
XPO said: “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 added the decision would “ensure continuous employment for workers” at the Barnsley site.
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.”
Community, the union that represents workers at the Asos site, said it was “supporting members who are affected by the transition from Transline to PMP.”