Phoenix Rack & Axle, Inc. has voluntarily filed for Chapter 11 bankruptcy protection. The Phoenix-based automotive remanufacturer has been in business for nearly 22 years.
The filings show the company’s gross revenue has declined significantly since 2024. In addition, its liabilities currently outweigh its total assets.
Phoenix Rack & Axle, Inc. Files for Chapter 11
Court records obtained through RK Consultants show that the company submitted its petition on June 30, 2026. Company president Stephen Griffin, who is also the authorized representative, signed the petition prior to filing.
Case records mention Phoenix Rack & Axle, Inc. as a “small business debtor” and show that it has decided to proceed under Subchapter V. Such filings are used by small businesses to complete their bankruptcy in a faster and cost-effective manner.
Attorney Allan D. NewDelman of Allan D. NewDelman P.C. is the legal counsel in the case.
Petition Shows Declining Gross Revenue and Rising Financial Gap
The company’s statement of financial affairs details its gross revenue over the past two years. Gross revenue totaled about $2.18 million in 2024 before declining to approximately $1.53 million in 2025.
The filing reports gross revenue of approximately $487,000 for the period from January 2026 through June 30, 2026.
The company also submitted a summary of assets and liabilities. While the liabilities are estimated to be approximately $2.13 million, its assets are around $177,848. This suggests that the company owes more than what it owns.
The company added a list of creditors with the largest unsecured claims in its petition. These included Bell Bank, S&S Truck Parts, Cintas Corporation, and others.
Court filings indicate that funds will be available for distribution to the unsecured creditors.
A summary of the Chapter 11 petition is further shared here:
- Filing Date: June 30, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the District of Arizona
- Type of Filing: Active, Voluntary Petition
- Chapter: 11, Subchapter V
- Case Number: 2:26-bk-06438-MCW
- Estimated Assets: Between $100,001 and $500 million
- Estimated Liabilities: Between $1,000,001 and $10 million
- Estimated Creditors: 1-49
- Reason for Filing: Restructure business under court supervision
About the Company
Phoenix Rack & Axle operates as a remanufacturing company for automotive parts. The company focuses on rack-and-pinion steering units, differentials, CV axles, custom driveshafts, and other steering and drivetrain components.
According to its website, the company has maintained inventories of remanufactured steering and axle components since 2004. It has also sold new rear axle shafts through the years. The company grew its operations in 2009 by acquiring the assets of Dick’s Driveshaft Exchange.
As of now, it serves customers in Arizona and across the country with emphasis on remanufactured replacement parts for passenger vehicles, trucks, and specialty automotive applications.
The Chapter 11 case will allow Phoenix Rack & Axle to pursue a court-supervised reorganization while it works to address its financial obligations.
