The bakery that makes the bread for well-known establishments and casinos has filed for bankruptcy but will remain in operation.
Formica Brothers Bakery, known for its bread, cakes, cannolis and other baked goods, and its other entity Baker Boys, filed for Chapter 7 bankruptcy April 5 in the U.S. Bankruptcy Court District of New Jersey located in Camden. Philly.com first reported the story.
The bakery has been in existence since 1919, has been a staple in the city and passed down through multiple generations of the Formica family, including Atlantic County Freeholder Frank Formica.
Before the bankruptcy petition was filed, the bakery leased the assets of Formica Brothers Bakery to Pat McKenna, owner of Taste of Italy in Egg Harbor City on April 1, a transition Formica said was seamless. Formica, 67, said he would help out as a consultant, but cannot have any ownership or receive any profits from the newly formed Formica’s Bakery.
There will also be no layoffs for the nearly 70 bakery employees.
“There is very little consolation in bankruptcy,” Formica said. “But I do feel better knowing that our legacy to the community will continue and the workers will still be employed. We will continue and live to see another day.”
Formica said the economy around 2009 and 2010 made it tough for smaller businesses such as Formica Brothers to stay around the city, especially with several casinos closing at the time. Another factor that led to the filing were two separate accidents that severely injured two employees, leading to each former worker filing a $5 million lawsuit, which Formica says was outside of his insurance coverage.
The bakery, which has been in operation for 100 years, provides baked goods for a number of South Jersey businesses in and around the Jersey Shore such as the White House Sub Shop, Atlantic City Sub Shops, as well as nearby casinos and other famous dining establishments.
McKenna, who has a lot of experience in food manufacturing, says everything will remain the same from the bread to the bakery, to the employees. The only thing that has changed is the owner. McKenna added there would be more promoting more of the baked goods besides the bread.
“Our goal was to try to keep people employed and try to keep their customers getting the famous Atlantic City bread, and we’ve managed to both of those,” McKenna said. “We are going to continue on hopefully for another hundred years.”