Phoenix Pride, the main organization behind Arizona’s biggest LGBTQ+ event, has announced it is filing for bankruptcy just before Pride Month begins.
The filing was made in U.S. Bankruptcy Court in Arizona, indicating that Phoenix Pride is seeking Chapter 11 protection, which allows it to keep operating while restructuring its debts under legal supervision, according to local reports.
The board stated in a press release that the decision was very difficult to make.
They noted, “Rising operational costs, economic instability, changes in sponsorship and funding, partly due to the current political environment, and heightened pressures on nonprofits have created challenges that we can no longer manage independently.” The statement adds that like many other Pride organizations across the country, Phoenix Pride is tackling serious financial concerns that could jeopardize its future.
Interestingly, this financial trouble comes just a few months after Tucson Pride shut down, citing ongoing financial woes and management problems.
This series of developments brings to light concerns about the longevity of major LGBTQ+ organizations in the state as they deal with escalating costs, limited resources, internal conflicts, and the need for community support.
Phoenix Pride expressed that filing for Chapter 11 is a step toward reorganizing its finances while still fulfilling its mission. They emphasized that “our mission remains unchanged.”
Back in January, during a town hall, locals raised questions regarding the organization’s finances, transparency, and future plans. In November, Phoenix Pride acknowledged being $350,000 short of its budget, attributing the shortfall to reduced festival attendance and the loss of key sponsors.
Court records show three creditors claiming the organization owes money, including $11,770 to Wells Fargo and $1,600 to Oracle Event Group.
The largest liability mentioned is a disputed claim of $418,886.31 involving Pride Group LLC, an Arizona-based event services company. The details surrounding this dispute are unclear.
Phoenix Pride stated its intention to keep serving the community during this challenging time, working closely with legal and financial advisors to find a sustainable way forward.
The group added, “We prioritize transparency and will provide updates as necessary.”
