UPDATE: Papa to Board, “Baby, Let Me Come Back!”
ABC News is reporting on a letter leaked to them Tuesday in which Papa John’s founder, John Schnatter, challenges the decision to have him removed as chairman. Of course, he voluntarily agreed to step down, but that hasn’t stopped Schnatter and his attorney’s from fighting back on the issue. I reported on this story last week when Schnatter admitted to his use of the N-word and stepped down. Since then Schnatter has been decisively, and rightfully, vilified for his use of the racial slur and has experienced a great deal of blowback online. A mountain of hate apparently isn’t enough to keep ol’ Johnny boy away, however, as he and his attorney send letters to the board. “The corporate governance experts with whom I consulted said this is not the proper action of either a director or the board,” says Schnatter’s letter, which of course has no bearing on the fact that he DID resign last week. Glasser, one of Schnatter’s lawyers, wrote that there was a “failure to conduct a complete and independent investigation”, and that this would result in liability for “individual Board members…for all resulting harm to the Company and to Mr. Schnatter” according to ABC. I don’t know the precedent for such a charge, but it sounds faulty considering that Schnatter WILLFULLY relinquished his seat as chairman.
Schnatter is still a majority stock holder for the company, with over 30% shares, and has retained a seat on the board, though his image will be removed from company material. A release from CEO Steve Richie seems to suggest that the relationship is coming to an end: “Racism and any insensitive language, no matter what the context simply cannot -– and will not -– be tolerated at any level of our company”. John might think that this was a “mistake” but no one else seems to. Schnatter is being roasted alive on #blacktwitter as we speak:
— SushiKing/TheUnifiedRepublic (@SushiKingCEO) July 14, 2018
— Doug "Bear" Hazard (@BearlyDoug) July 12, 2018