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

Papa John's founder apologizes for using N-word during sensitivity training conference call

At one point, Schnatter reportedly said "Colonel Sanders called blacks n*****s", and complained that even despite it, the KFC founder didn't face any public backlash. Regardless of the context, I apologize.

Schnatter, who founded the company in 1984, resigned as chief executive in December previous year, after blaming slowing sales growth on the outcry surrounding football players kneeling during the national anthem.

After the Forbes report, the NAACP and the chair for the Kentucky Democratic Party called for his resignation or removal from the board.

Shares in the pizza company dropped 5.9 percent following the announcement of the news, knocking $96.2million (£73million) off the company's market value.

Schnatter acknowledged using the slur and apologized on Wednesday, but that was not enough for him to keep his position.

The Forbes report comes just seven months after Schnatter abruptly exited the C-suite.

Schnatter's comments were made during a May conference call with a marketing agency and were revealed Wednesday by Forbes, which reported that he was engaged in "a role-playing exercise" created to help him avoid damaging public-relations gaffes. The agency, Laundry Service, did not immediately respond to requests for comment.

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University of Louisville Board of Trustee member John Schnatter listens to the discussion regarding employment of athletic director Tom Jurich, Wednesday, Oct. 18, 2017.

Papa John's did not refute the report Wednesday, but issued a statement saying that it "condemns racism and any insensitive language, no matter the situation or setting".

Laundry Service cut ties with Papa John's shortly after. But coupled with his stance on football players protesting and this latest "slip-up", Papa John's Pizza better come up with their next sports-related gimmick for the goop they try to sell to the public.

Forbes reported that Schnatter's comments were meant to demonstrate his stance against racism, but that people on the call were offended by them.

Schnatter founded Papa John's in 1984 and grew the company into a delivery behemoth with more than 3,400 locations in North America.

Louisville announced Wednesday that John Schnatter, the founder and chairman of Papa John's Pizza, has resigned from the school's Board of Trustees.

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