Papa John’s and John Schnatter stroke the deal
Pizz chain restaurant Papa John’s has reached a settlement with his founder John Schnatter, who resigned last year as chairman after a ‘racism scandal’. After that departure, the chain and its namesake quarreled about the power of the company.
Schnatter is formally a member of Papa John’s board, but has now agreed to look for a replacement together with the company. This independent board member joins the next shareholders’ meeting. In addition, Schnatter is running a lawsuit against the pizza chain. Earlier, he wanted to enforce company documents through the courts, to prove that he was unfairly treated by Papa John’s.
Schnatter was discredited in July, after business magazine Forbes had revealed that he had used a ‘racist abuse’ in a conference call. The company then not only put down his position as chairman, but was barring him from Papa John’s headquarters. In addition, the pizza chain Schnatter removed all of his advertising messages.