Papa John's Founder Resigns as Chairman, Apologizes for Using Racist N-Word

Papa John's founder, John Schnatter, has resigned as the chairman of the board following a scandal with his alleged use of a racial slur. The face of the restaurant chain admitted having used the N-word during a May conference call.

Schnatter still owns about 30 percent of Papa John's, a major stake that had its value seen a significant rebounded following news of his resignation and apology, according to CNBC.

Before the announcement of his resignation, the market value of the company went through a decline since Wednesday, July 11 after a report by Forbes about his use of the racist N-word during a conference call from back in May.

During the call some two months ago, Schnatter was replying to a question on how he plans to distance himself, and the image of the restaurant, from racist groups online. The question partly stemmed from an earlier controversy from November last year, when Schnatter laid blame on the NFL and the ongoing anthem protests for lower sales at Papa John's, one of the major sponsors of the league.

He answered by calling out another fast food chain in this regard. "Colonel Sanders called blacks n-----s," the Papa John's founder pointed out, then adding that Sanders was not held to account over the slur. He went on to mention his early childhood days in Indiana, from which he recalled that people would drag African-Americans from the back of their trucks.

Before his resignation on Wednesday, Schnatter admitted to the allegations from individuals who found his comments to be offensive. "News reports attributing the use of inappropriate and hurtful language to me during a media training session regarding race are true," he wrote in an emailed statement.

"Regardless of the context, I apologize. Simply stated, racism has no place in our society," he concluded.

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