The agency that provides workers on zero-hour contracts to Sports Direct is poised to fall into administration due to a fall in margins.
Last week, the firm filed a notice of intention to appoint administrators, less than a month after the company sought new financial backers to boost its capital.
Transline has been trying to improve its compliance after it was criticised by MPs for how its workers were treated at Sports Direct's Shirebrook warehouse.
The agency recently appeared in front of MPs to update them on how policies have changed, and admitted the company's margins were under pressure because of its efforts.
In a 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."