Phoenix Pride files for Chapter 11 bankruptcy as nonprofit group faces ‘challenging moment’

Phoenix Pride, the nonprofit group behind Arizona’s largest annual LGBTQ+ cultural celebrations, filed for Chapter 11 bankruptcy protection last week.

Calling the situation “one of the most challenging moments in our history,” the organization’s board of directors said multiple factors led to the difficult decision of filing the case in the U.S. Bankruptcy Court for the District of Arizona.

“Rising operational costs, economic uncertainty, shifts in sponsorship and fundraising partly due to the current political climate and administration, and increasing demands on nonprofit organizations have created circumstances we can no longer navigate alone,” the board said in a statement Friday.

Chapter 11 is a type of bankruptcy that gives the filer a chance to restructure debt while continuing to operate, something Phoenix Pride plans to do with guidance from legal and financial advisers.

“Our mission has not changed. Our commitment to the LGBTQ+ community remains unwavering. But we cannot move through this chapter without the support, compassion and belief of the people who have always made Phoenix Pride possible,” the board said.

Gay and lesbian activists organized Phoenix’s first Pride march in 1981. Nearly 10 years later, volunteers launched the nonprofit organization that eventually became Phoenix Pride.

The group now organizes a variety of events each year, the largest of which are the Phoenix Pride Festival, Phoenix Pride Parade and Rainbows Festival. The bankruptcy filing came just before the start of Pride Month.

“Phoenix Pride was built on the strength, resilience and love of the LGBTQ+ community. Those values continue to guide us today. We believe in the future of this organization, and we hope our community will help us carry that future forward together,” the board said.

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