Papa John’s founder has apologized for using N-word on conference call

The Associated Press Louisville, Ky.-based Papa John’s, Mr. Schnatter said reports attributing use of “inappropriate and hurtful” language to him were true.

“Regardless of the context, I apologize,” the statement says.

The University of Louisville also said Wednesday that Mr. Schnatter resigned from its board of trustees, effective immediately.

Mr. Schnatter stepped down as CEO last year after blaming slowing sales growth on the outcry surrounding football players kneeling during the national anthem. He remains chairman of the company he started when he turned a broom closet at his father’s bar into a pizza spot.

Papa John’s shares fell nearly 5 percent Wednesday after the report, closing at $48.33.

A Papa John’s spokesman declined to comment on the report but sent an emailed statement that said the company “condemns racism and any insensitive language, no matter the situation or setting.” Laundry Service didn’t immediately respond to requestsfor comment.

Papa John’s CEO Steve Ritchiesent an internal memo to team members, franchisees and operators Wednesday addressingthe event.

“You may have read the media reports today tied to our company culture. We want to make it clear to all of you that racism has no place at Papa John’s,” according to the memo obtained by Bloomberg News.

“The past six months we’ve had to take a hard look in the mirror and acknowledge that we’ve lost a bit of focus on the core values that this brand was built on and that delivered success for so many years,” Mr. Ritchie said. “We’ve got to own up and take the hit for our missteps and refocus on the constant pursuit of better that is the DNA of our brand.”