Phoenix Pride, a prominent organization behind Arizona’s largest LGBTQ+ gathering, announced on the eve of “Pride Month” that it has filed for bankruptcy.
“The filing, submitted Thursday in the U.S. Bankruptcy Court for the District of Arizona, showed that Phoenix Pride was seeking Chapter 11 bankruptcy protection, allowing time to continue operations while restructuring its debts under court supervision,” the Tucson Sentinel reported.
The organization’s board of directors said in a press release that the decision “was not made lightly.”
“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 press release reads. “Like many Pride organizations and LGBTQ+ nonprofits across the country, Phoenix Pride has faced mounting financial pressures that threaten our long-term sustainability.”
The local publication noted that Phoenix Pride’s financial woes come just months after Tucson Pride shut down “following years of financial strain and leadership problems.”
“The sequence of events raises new questions about the sustainability of some of the state’s largest LGBTQ+ organizations as they navigate rising costs, strict budgets, internal struggles and community trust,” the report continues.
Phoenix Pride said filing Chapter 11 gives the organization the opportunity to reorganize its finances while continuing to operate, with the board of directors saying, “Our mission has not changed.”
According to the local news report, residents at a January town hall questioned the organization’s finances, transparency, and long-term plan. In November, Phoenix Pride publicly announced that its budget was $350,000 short and blamed its troubles on waning festival attendance and the loss of major sponsors.
Court documents list three creditors or entities who allege the organization owes them money, including $11,770 to a Wells Fargo Business Elite Card account and $1,600 to Oracle Event Group, per the report.
“The largest debt is a disputed claim of $418,886.31 tied to Pride Group, LLC, an Arizona-based event services company. A disputed claim means the two organizations disagree about the amount of money owed. The details of the dispute have not been disclosed,” the report details.
Phoenix Pride said it “intends to continue serving the community throughout this process while working closely with legal and financial advisors to create a sustainable future.”
“We are committed to transparency and will continue sharing updates as appropriate,” the organization said.
Katherine Hamilton is a political reporter for Breitbart News. You can follow her on X @thekat_hamilton.
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