Atlantic City 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.

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