The founder of Papa John’s is apologizing after using the N-word in a conference call this past May.
John Schnatter, the chairman and public face of the company, admitted the incident in an email statement to Forbes on Wednesday.
“News reports attributing the use of inappropriate and hurtful language to me during a media training session regarding race are true,” he said. “Regardless of the context, I apologize. Simply stated, racism has no place in our society.”
Shares of Papa Johns fell as much as 5.9 percent to $47.80, a new 12-moth low, erasing $96.2 million in market value, CNBC reports. The stock did rebound slightly before the end of the day, closing down 4.8 percent.
The call was a role-playing exercise designed for training employees and preventing slip-ups with the media. Schnatter had been arranged to do the program after making controversial statements on national anthem protests in the National Football League this past November, Forbes reports.
On the call, when asked whether he would distance himself from racist groups online, he reportedly sought to downplay his past comments, saying, “Colonel Sanders called blacks n—–s.” He also described how in his hometown in Indiana growing up people would drag African-Americans to death with trucks, apparently intending to show his outrage, but instead came off as offensive to multiple individuals on the call.
Shortly after, the marketing agency that set up the training exercise, Laundry Service, terminated their contract with Papa John’s.
“Papa John’s condemns racism and any insensitive language, no matter the situation or setting,” a company spokesman told CNBC. “Our company was built on a foundation of mutual respect and acceptance.”
Papa John’s announced late last year that Schnatter would step down as CEO, a few months after he criticized NFL leaders over players’ protests during the national anthem, blaming the controversy for lagging sales.
Papa John’s had been the official sponsor of the NFL, but was dropped earlier this year.
