Iconic Atlantic Metropolis bakery recordsdata for Chapter 7 chapter
Formica Brothers, the 99-year-old firm which makes bread for a few of Atlantic Metropolis’s most well-known sandwich outlets, has filed for Chapter 7 chapter.
The chapter was pressured by two lawsuits filed after office accidents, mentioned former proprietor Frank Formica within the Philadelphia Inquirer.
The enterprise was based in 1919 by Frank Formica’s grandfather and grand-uncle and have become a fixture on Arctic Avenue in Ducktown.
“It’s unhappy,” mentioned Formica. “It’s tragic. That is my grandfather, my grandparents and my mother and father, and my household. We’re being pressured into this case. I’m 67 years outdated. It’s not precisely my exit technique.”
However Formica Brothers bread will nonetheless be made, a minimum of in the intervening time. A neighborhood meals producer has leased the identify, and 67 of the bakery’s 71 present staff will likely be retained, the Inquirer reported. Formica Brothers will nonetheless present bread for greater than 280 outlets, together with White Home and Sack-O-Subs.
The corporate confronted two $5 million lawsuits introduced by injured staff. In 2015, one employee’s hand was crushed by a bread-making machine. In 2016, one other worker’s arm was amputated under the elbow after it was caught in a cell conveyor. The Chapter 7 submitting — which listed the corporate’s property at $675,416 and its liabilities at $5,740,436 — ought to discharge the fits.
The long-term financial state of affairs in Atlantic Metropolis additionally contributed to the chapter, mentioned Formica, a Republican freeholder-at-large for Atlantic County. The realm “has by no means grow to be wholesome or entire” after the 2008 recession, 2012’s Hurricane Sandy, and the closure of 5 casinos round 2014, he advised the Press of Atlantic Metropolis.
Formica Brothers is the newest of a number of longtime Atlantic Metropolis companies to declare chapter lately, together with Tony’s Baltimore Grill. “Each iconic enterprise has suffered from the downturn of economic system,” Formica mentioned within the Inquirer. “The foreclosures fee in Atlantic County is the very best within the nation. We had a lack of 35,000 jobs, 5 on line casino closings. That took a toll on us.”
Pat McKenna, a neighborhood meals producer and new leaseholder of the Formica Brothers identify and recipe, mentioned the bread will likely be made the identical method. “If it isn’t made in Atlantic Metropolis, it isn’t ‘Atlantic Metropolis bread’,” he advised the Press. “I am advised it is the water.”