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Papa John's founder John Schnatter resigns over racial slur Papa John's founder John Schnatter resigns over racial slur
(about 3 hours later)
The founder and chairman and Pizza chain Papa John’s has resigned hours after being forced to apologise for using a racial slur during a conference call in May.The founder and chairman and Pizza chain Papa John’s has resigned hours after being forced to apologise for using a racial slur during a conference call in May.
The Forbes news site reported that John Schnatter used the N-word during a media training exercise. When asked how he would distance himself from racist groups, Schnatter reportedly complained that Colonel Sanders, the founder of Kentucky Fried Chicken, never faced a backlash for using the word.The Forbes news site reported that John Schnatter used the N-word during a media training exercise. When asked how he would distance himself from racist groups, Schnatter reportedly complained that Colonel Sanders, the founder of Kentucky Fried Chicken, never faced a backlash for using the word.
In a statement released by Kentucky-based Papa John’s, Schnatter said reports attributing use of “inappropriate and hurtful” language to him were true. “Regardless of the context, I apologise,” the statement said.In a statement released by Kentucky-based Papa John’s, Schnatter said reports attributing use of “inappropriate and hurtful” language to him were true. “Regardless of the context, I apologise,” the statement said.
Forbes reported that Schnatter, the 56-year-old fast food chain founder, made the comments during a training exercise organized after Schnatter set off another firestorm for making racially charged statements last November.
Papa John’s is a major sponsor of the National Football League and last year Schnatter blamed sluggish sales at the chain on the decision by some NFL players to kneel during the national anthem in a protest against racial inequality in the US.
“NFL leadership has hurt Papa John’s shareholders,” said Schnatter and the protests “should have been nipped in the bud a year and a half ago.”
His comments were praised by neo-nazi groups and the company was forced to issue an apology.
The company said Olivia Kirtley would act as lead independent director, and added it would appoint a new chairman in the coming week.The company said Olivia Kirtley would act as lead independent director, and added it would appoint a new chairman in the coming week.
“Papa John’s condemns racism and any insensitive language, no matter the situation or setting ... We take great pride in the diversity of the Papa John’s family, though diversity and inclusion is an area we will continue to strive to do better,” the company said in a separate statement.“Papa John’s condemns racism and any insensitive language, no matter the situation or setting ... We take great pride in the diversity of the Papa John’s family, though diversity and inclusion is an area we will continue to strive to do better,” the company said in a separate statement.
Schnatter, who founded the company in 1984, resigned as chief executive in December last year, after blaming slowing sales growth on the outcry surrounding football players kneeling during the national anthem. Schnatter, who founded the company in 1984, resigned as chief executive in December last year, after the outcry over his NFL comments.
Yum Brands Inc’s Pizza Hut replaced Papa John’s as NFL’s sponsor in February, ending Papa John’s eight-year relationship with the top US football league.Yum Brands Inc’s Pizza Hut replaced Papa John’s as NFL’s sponsor in February, ending Papa John’s eight-year relationship with the top US football league.
Papa John’s shares closed nearly 5% down at $48.33 on Wednesday.Papa John’s shares closed nearly 5% down at $48.33 on Wednesday.
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