United Site Services, a major player in the portable toilet and on-site sanitation industry, has filed for bankruptcy, shaking a part of the construction world that many rarely notice. Known for brands such as Johnny on the Spot and Mr. John, the company filed for Chapter 11 bankruptcy protection in a New Jersey court on December 29. Its goal is to cut billions of dollars in debt while continuing to operate normally and maintain its essential role on construction sites across the U.S.
Headquartered in Massachusetts, United Site Services runs one of the largest portable sanitation fleets in the country, with around 350,000 units and more than 3,000 workers serving over 70,000 customers. Its services go beyond portable toilets, including high-end restroom trailers, handwashing stations, temporary fences, and dumpsters. These services make it a behind-the-scenes necessity at construction sites and public events nationwide. But when the construction market slowed down, the company’s dependence on that single industry became a weakness it couldn’t ignore.
Construction Decline and a Heavy Debt Load
About 70% of United Site Services’ revenue comes from construction projects. As that sector weakened, the company’s income dropped sharply. Multifamily housing completions fell by almost 30% year over year, and permits for new homes in markets like San Francisco were cut in half compared to 2022. Commercial and non-residential building projects also slowed, leaving the company with fewer contracts.
At the same time, United Site Services carried enormous debt, more than $2.5 billion in total. These loans, due by 2030, included multiple layers of complex financing across 22 company divisions. For a while, the company managed the load, helped by solid earnings and steady growth. But when interest rates began rising, things unraveled. Much of the debt had variable interest rates, meaning payments ballooned as rates climbed. Meanwhile, the costs of fuel, vehicle repairs, and labor rose due to inflation and supply chain problems. Rating agency S&P Global downgraded the company in 2023, citing weak earnings and higher borrowing costs. Efforts to fix the balance sheet outside of court ultimately failed, leading to the bankruptcy filing.
The Private Equity Push That Backfired
The company’s current structure dates back to 2017, when private equity firm Platinum Equity bought United Site Services for about $4 billion. Under Platinum’s ownership, the company went on an acquisition spree, buying 36 smaller businesses and doubling its revenue by 2021. While this aggressive expansion boosted growth, it also came with more debt and less financial flexibility.
In 2024, United Site Services tried to steady itself with a major debt restructuring. The plan brought in $300 million in new loans and extended debt deadlines to 2030. Platinum added another $50 million in temporary funding to help keep operations running. Optimism grew as forecasts pointed to improving construction activity. But those improvements never materialized. The construction environment worsened, revenues came up short, and the restructuring didn’t give the company the breathing room it needed. One key creditor, CastleKnight Management, refused to go along with the plan and is now seen as a potential obstacle to a quick resolution in court.
Now, under Chapter 11 protection, United Site Services has secured $120 million in new financing to keep paying employees and suppliers while the case moves forward. Its “prepackaged” reorganization plan, meaning one designed ahead of filing would erase roughly $2.4 billion in debt and inject $1.1 billion in new capital. Most major lenders are expected to take ownership after the process, replacing Platinum Equity as the company’s controlling shareholder. The court aims to confirm the plan by mid-February, allowing the company to exit bankruptcy in March.
What It Means for Construction and Workers
The United Site Services case highlights just how fragile the construction industry has been. Over the past year, overall construction spending fell nearly 3%, with steep drops in commercial and manufacturing projects. Rising tariffs on materials like steel and aluminum have made building more expensive, while project cancellations surged by more than 80%. At the same time, the construction workforce is aging, and job vacancies have jumped to around 440,000, up dramatically from 2019 levels.
Despite the turbulence, United Site Services is prioritizing stability for its 3,000-plus employees and suppliers. The company has asked the court to allow continued payment of wages, benefits, and vendor contracts to minimize disruption. Prepackaged bankruptcies like this one have become more common, offering large companies a faster, less chaotic way to restructure without shutting down operations.
If approved as planned, United Site Services will emerge from bankruptcy with less debt and new owners well-versed in managing financial turnarounds. The company will still be worth far less than before, between $900 million and $1.35 billion, compared to the $4 billion valuation when Platinum bought it. The story serves as a warning for other businesses closely tied to construction: when borrowing costs rise and demand slows, even the most essential service providers can quickly find themselves in deep trouble.
Sources
United Site Services Chapter 11 bankruptcy filing documents. U.S. Bankruptcy Court for the District of New Jersey, December 29, 2025
United Site Services first-day declaration by Chris Kelly. Alvarez & Marsal, December 29, 2025
United Site Services restructuring support agreement with ad hoc lender group. United Site Services, December 28, 2025
United Site Services Reaches Agreement with Key Financial Stakeholders. United Site Services, December 29, 2025
S&P Global Ratings downgrade of United Site Services issuer credit rating to CCC. S&P Global Ratings, 2023
Construction spending data. U.S. Census Bureau, July 2025