Following the controversy of racist comments, the Papa John’s founder, John Schnatter, has been removed from his office.
In a statement released on Sunday, a special committee of Papa John’s Board of Directors came to the decision to remove Schnatter from his office at the company’s headquaters in Louisville, Ky.
This is due to his use of racist language while on a conference call. During a media-training conference call, Schnatter used the N-word and also described in graphic detail the lynching of African-Americans in Indiana, trying to prove that he was not racist. The outcome of the conference call led to the company’s marketing agency, Laundry Service, to cut ties from the pizza chain.
The committee was made up of the company’s independent directors, and they decided to terminate Schnatter’s sublease agreement for his office space based on the fact that he no longer has an active role in the management of the company.
They also announced in the statement that Schnatter will “cease all media appearances, and not make any further statements to the media regarding the company, its business or employees.” His image will also be removed from all of their marketing materials.
For all upcoming business, the committee intends to supervise and external audit and investigation that will be conducted through the company’s preexisting processes, policies and systems related to diversity and inclusion, supplier and vendor engagement and the company’s culture.
Read Papa John’s Full Statement Below:
Papa John’s International, Inc. today announced that a special committee of the board of directors consisting of all of the independent directors was formed to evaluate and take action with respect to all of the company’s relationships and arrangements with John H. Schnatter. The special committee is being advised by independent outside legal counsel.
The special committee has already taken a number of important actions. The special committee approved and directed the company to terminate Mr. Schnatter’s Founder Agreement, which defined his role in the company, among other things, as advertising and brand spokesperson for the company. Since Mr. Schnatter no longer has an active role with the management of company’s business, the special committee also approved and directed the company to terminate a sublease agreement granting Mr. Schnatter the right to use certain office space at the company’s corporate headquarters in Louisville, Kentucky.
As previously announced, Mr. Schnatter is no longer a spokesperson for the company or the brand. The company has specifically requested that Mr. Schnatter cease all media appearances, and not make any further statements to the media regarding the company, its business or employees.
The special committee also intends to oversee the external audit and investigation which the company previously announced that it will conduct of all the company’s existing processes, policies and systems related to diversity and inclusion, supplier and vendor engagement and Papa John’s culture.
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