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Biffa, the parent company of the Island's household waste collection firm, Island Waste, is about to be seized by its lenders because of crippling debts according to reports.
Biffa employs around 6,000 bin workers and has household collection contracts across the UK, including operations by its subsidiary company Island Waste.
The company is handing control of the business to creditors led by banking giant HSBC after struggling to repay debts, according to The Sunday Times newspaper.
Biffa is understood to have been saddled with more than £1 billion worth of loans since 2008 when it was taken private by three investment firms: Montagu, Global Infrastructure Partners and the private equity arm of Halifax Bank of Scotland.
The £1.7 billion takeover was financed with £1.1 billion of loans from around 70 banks and financial institutions. But its profits have been wiped out by large interest payments on the debt.
Biffa was founded more than 100 years ago and is the UK's second-largest waste collector.
Based in High Wycombe, Buckinghamshire, it collects around four million tonnes of waste a year from around 75,000 industrial and commercial customers and one million households.
A Biffa spokesman said: "Biffa is a profitable, cash generative business which is performing in line with its plans.
"The company is undertaking a well-managed, planned restructuring process, working with its lenders to reduce the debt on the business."
HSBC declined to comment.
GMB, the union for street cleaning and refuse staff, is seeking urgent talks with Biffa to protect jobs and services.
Brian Strutton, national secretary for public services at the GMB, said: "Biffa is a fundamentally sound business crippled by the greed of private equity owners.
"The core waste and recycling operation can emerge stronger without the millstone of debt around its neck."
** UPDATE 17:15 **
John Metcalfe, Isle of Wight Council deputy director for economy and environment said: "Having held initial discussions with Biffa today, the council is assured that these reports will have no significant impact on the Island’s waste collections.
"We intend to have further discussions with the company tomorrow (Tuesday) after which we hope to be in a position to comment further."
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