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