Papa John’s founder John Schnatter announced he may sell his shares of the business Monday, May 6.
What We Know…
- Schnatter said he would sell his 31% of Papa John’s stock in public markets, private transactions and registered offerings. His ownership is worth around $531 million.
- Schnatter resigned from the companies’ Board of Directors earlier this year after he filed complaints against Papa Johns and was nearly forced off the board. He is in the process of choosing an independent director to replace him.
- Schnatter was removed from advertising and market and resigned as chairman last year after he used a racist slur during a media training session. This tarnished the brand’s name as well as plummetted company sales and stock.
- In 2018 the company lost millions of dollars on legal expenses, diversity training, new marketing and other causes resulting from Schnatter’s problematic remarks. The company has since been canceling Schnatter’s contracts and slowly removing him from the company.
- This wasn’t Schnatter’s first controversial headline that took a toll on the business; in 2017 he resigned as chief executive because he made controversial statements about the NFL’s handling of national anthem protests.
- The company’s first-quarter earnings for this year show a continued struggle to recover from these scandals.
Schnatter has also left the board of trustees of the University of Louisville; Schnatter’s net worth was estimated at $801 million in 2018.