Ocean City Mayor Jay Gillian has filed for personal bankruptcy, revealing nearly $6 million in debt. The filing, submitted to the U.S. Bankruptcy Court in New Jersey, comes amid a significant decline in Gillian’s personal income. Despite these financial challenges, he intends to remain in office and run for reelection in May.
Gillian’s bankruptcy filing indicates liabilities totaling $5,765,568. He announced his decision to seek Chapter 11 protection earlier this month, stating that this legal framework allows for a court-approved financial reorganization. This process aims to protect him from creditor lawsuits while restructuring his debts, although it typically requires creditor approval.
The mayor’s financial troubles are extensive. His filing shows that he owes approximately $2.5 million to the IRS and the New Jersey Division of Taxation. He has identified 17 creditors in total, including significant debts related to his former business, Wonderland Pier, which he has owned for many years.
Among the creditors listed are the Patricia Gillian Irrevocable Trust and 1st Bank of Sea Isle City, both seeking around $600,000 in payments tied to the theme park. The bank’s lawsuit, initiated in August, alleges that Gillian has defaulted on a settlement agreement. Other debts include various credit card obligations and unpaid bills to utility companies such as Comcast, Atlantic City Electric, and South Jersey Gas.
In a letter addressed to Ocean City residents, Gillian described the bankruptcy as an “extraordinarily difficult decision” and expressed his commitment to maintaining the city’s operations. He emphasized that his personal financial situation would not impact his duties as mayor. “This is not a decision I ever imagined I would face, nor is it one I take lightly,” he wrote, adding that he intends to learn from this experience.
The bankruptcy case also cites a $1 million lien against Gillian’s home in Ocean City, linked to a trust associated with Eustace Mita, the head of ICONA Resorts. Mita had acquired Wonderland Pier as it approached a sheriff’s sale due to approximately $8 million in debt. Mita’s proposal to demolish the theme park and replace it with a $170 million hotel is currently awaiting review by the city planning board.
In terms of assets, Gillian’s filing indicates he holds around $1.2 million in combined real estate and personal property, which includes his home valued at $825,000, two vehicles, and a baby grand piano valued at approximately $100,000.
Gillian’s income has taken a dramatic downturn. In 2023, he reported earnings of about $504,000, a substantial drop from the previous year when he earned approximately $152,000 after the closure of Wonderland Pier, which had operated for 94 years.
As he navigates through this bankruptcy process, Gillian remains in his fourth term as mayor. He is eligible to seek a fifth term in the upcoming municipal elections. A bankruptcy court hearing is scheduled for late January, which will further address his financial situation.
