Papa John’s says founder John Schnatter has resigned as chairman of the board.
The company made the announcement late Wednesday, hours after Schnatter apologized for using a racial slur during a conference call in May.
The apology comes after Forbes cited an anonymous source saying the pizza chain’s marketing firm broke ties with the company afterward.
Forbes said Schnatter used the N-word during a media training exercise. When asked how he would distance himself from racist groups, Schnatter reportedly complained that Colonel Sanders never faced a backlash for using the word.
In a statement released by Louisville, Kentucky-based Papa John’s, Schnatter said reports attributing use of "inappropriate and hurtful" language to him were true. He said, "Regardless of the context, I apologize."
Schnatter stepped down as CEO last year after blaming slowing sales growth on the outcry surrounding football players kneeling during the national anthem.
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