Papa John's Founder John Schnatter Says Resigning Was A Mistake Post-Extortion

Papa John's founder John Schnatter

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.

Oregon State Vice President and Director of Athletics Scott Barnes said Schnatter's comments are not reflective of the university's values and the inclusive environment the school strives to offer.

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.

Papa John's was a long-term National Football League sponsor.

"The board asked me to step down as chairman without apparently doing any investigation", he said in the letter obtained by CNBC.

The move comes days after John Schnatter, the corporation's founder, admitted to using the N-word during an internal conference call.

"They made it pretty clear, the words were, "If I don" t get my f-ing money, I'm going to bury the founder, ' said one of the executives", Schnatter said in the WLKY interview. Schnatter remains on the board.


Schnatter's resignation came after it emerged that he had used the n-word and graphically described lynchings on a call with Papa John's marketing agency.

He bought three units in a new condominium-and-residence complex in Deer Valley for about $23 million, The Wall Street Journal reported.

"We know we can do better and I'm confident that we will", CEO Steve Ritchie said in May.

Papa John's also announced that Schnatter will "cease all media appearances, and not make any further statements to the media regarding the company, its business or employees", the company said in a statement.

A representative for Schnatter declined to comment on whether he was considering legal action.

"As previously announced, Mr. Schnatter is no longer a spokesperson for the company or the brand", Papa John's said in a statement. He has since stepped down from the University of Louisville's Board of Trustees after the area NAACP branch called for him to be removed, the Washington Post reports.

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