Papa John's says founder resigned as chairman of the board

Papa John's says founder resigned as chairman of the board

In a statement announcing Schnatter's resignation, Papa John's said Olivia Kirtley was acting as the companies lead independent director and that a new board chairman would be announced "in the coming weeks".

The 56-year-old admitted to and apologized for using the n-word Wednesday after he was the subject of a Forbes report that documented his use of the racial slur. According to a Forbes report on Wednesday, during a role-playing exercise he insisted that KFC founder Colonel Sanders had never faced an outcry for using the term.

"Regardless of the context, I apologise".

According to Darren Rovell of ESPN, Schnatter also resigned from Louisville's board of trustees.

And the gym at the university, for which he gave nearly a million dollars, will be stripped of his name.

Representatives of the outside marketing firm, Laundry Service, declined to comment on the incident.

A representative for Papa John's told Forbes that the restaurant chain "condemns racism and any insensitive language, no matter the situation or setting".

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He came under fire in 2012 for saying the Affordable Care Act, the healthcare law better known as Obamacare, would be a "lose-lose" for Papa John's franchisees and employees.

Shares of Papa John's Pizza (PZZA) fell almost 6 percent after the report, and ended Wednesday trading down 4.8 percent. In the same call, Schnatter also reminisced over his upbringing in IN, where he claims African-Americans were dragged from the back of trucks until they died.

The source added that although Schnatter intended for his remarks to show his stance against racism, multiple people found it objectionable.

The University of Kentucky has released the following statement on Schnatter's comments.

Schnatter's resignation comes a day after the executive was reported to have used the N-word during a May conference call with a marketing agency.

J. David Grissom, the chairman of the university board, said he had spoken to Schnatter on Wednesday. (Pizza Hut immediately stepped in to fill the sponsorship void.) It also resulted in Papa John's issuing a statement that the company does not want hate groups to buy its pizzas.

Papa John's is the third largest pizza chain in the United States by sales, trailing Domino's and Pizza Hut. "Simply stated, racism has no place in our society", he said.

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