Houston Chronicle

Papa John’s evicts its founder from his office space at the chain’s headquarte­rs.

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Papa John’s Internatio­nal’s board put further distance between the pizza chain and its founder John Schnatter for using a racial slur, agreeing to review all ties to him, evict him from the headquarte­rs and remove him from all marketing materials.

A special committee of independen­t directors ordered the terminatio­n of a so-called founder’s agreement that designated Schnatter as the brand’s face and voice and is requesting he cease media appearance­s on behalf of the firm, the company said in a statement after a board meeting Sunday night.

Though Schnatter resigned as chairman this month and no longer holds a formal management role, he remains on the board and still owns about 30 percent of the company’s shares.

Schnatter came under pressure after a media report that he used a racial slur and graphic descriptio­ns of violence against minorities in a conversati­on with the company’s former media agency, Laundry Service.

The committee also told the company to terminate a sublease granting Schnatter the right to use office space at the headquarte­rs in Louisville, Ky., according to the statement.

The board accepted Schnatter’s resignatio­n as chairman July 11 and will appoint a new chairman in the weeks ahead. CEO Steve Ritchie had announced on Friday that Schnatter would “no longer be in any of the advertisin­g or marketing materials associated with the brand.”

Shares of Papa John’s have dropped 4.6 percent this year through July 13, leaving the chain with a stock market valuation of about $1.7 billion.

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