Papa John's Founder John Schnatter Calls Resignation a 'Mistake'

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The founder of Papa John's now says that it was a "mistake" for him to resign as chairman of the company after it was revealed that he used a racial slur during a conference call.

Schnatter asserted that the board of directors "asked me to step down as chairman without apparently doing any investigation".

Schnatter, according to a report in the Wall Street Journal on Tuesday, has since gone as far as to call his resignation "a mistake".

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In the report last week, Forbes said Schnatter used the N-word during a media training session in May, and that the incident led the marketing agency to sever its ties with the company.

According to USA Today, the Papa John's founder still owns 30 percent of his company, which was worth $531 million at the end of the day Friday. The marketing firm did not respond to requests for comment. Over the weekend, various uses of his image were scrubbed from the company's website, including a photo of Schnatter with company employees, the story of the chain's founding, and Schnatter's image on its logo. "I'm like, 'I'm not paying you $6 million, '" he told the radio station. "We had talked about it and he indicated it was influx and yes he had asked for more time and then once we had made the decision, no promises were made that that would be possible obviously, and then when I made the final decision tried to reach him again and texted, that our decision was made". I don't, and will not use that word and people at Papa John's don't use that.' And that was the comment.

Laundry Service has yet to comment on Schnatter's accusations. Schnatter apologized for his words, but has also said that his statement was taken out of context. Same-store sales in North America, similarly, dropped 5.3 percent during the first quarter, as its lost ground to Domino's and Pizza Hut.

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Schnatter, who founded the pizza company in 1984, uttered the slur after he reportedly complained that Colonel Sanders of KFC never received public backlash for his racist remarks.

The company has also formed a special committee of independent board members to evaluate Papa John's relationship with Schnatter.

Schnatter had already resigned as CEO past year after blaming disappointing sales on the NFL leadership's on the controversy surrounding football players kneeling during the national anthem. The source said that other people on the call got offended.

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