Taxpayers likely to lose more than $2M in Formica bakery bankruptcy

Taxpayers may be on the hook for more than $2 million in loans made through state economic development programs as a result of the bankruptcy of Formica Bros. Bakery and two affiliated companies.

The businesses, owned by Atlantic County Freeholder Frank Formica, owed about $2 million to the New Jersey Economic Development Authority and $689,000 to the Pleasantville Urban Enterprise Zone, a program through the state Department of Community Affairs, when they filed for Chapter 7 liquidation in April.

Formica declined to comment Wednesday on the advice of his attorney.

Both the NJEDA and the Pleasantville UEZ have liens on about $400,000 in accounts receivable for Formica Bros., Formica said this month during the first meeting of creditors in Northfield with Bankruptcy Trustee Brian Thomas.

Read more: https://www.pressofatlanticcity.com/business/taxpayers-likely-to-lose-more-than-m-in-formica-bakery/article_5bc236a8-0730-5454-9c13-059358a0c138.html