OSU cuts ties with Papa John’s Pizza

John Schnatter resigned as the Chairman of the Board on July 11

John Schnatter resigned as the Chairman of the Board on July 11

John Schnatter, the founder of the pizza chain Papa John's, will no longer be the chairman of the board - or the face of the company.

"The board asked me to step down as chairman without apparently doing any investigation", he said in the letter obtained by CNBC.

Schnatter's letter detailed what happened in his call with the marketing firm, Laundry Service, and went on to say that he will not allow his "good name or the good name of the company I founded and love to be unfairly tainted".

Schnatter resigned last week after apologizing for using the slur during a confidential training exercise with a marketing agency.

"The derogatory and insensitive comments made by Papa John's founder John Schnatter are not reflective of Oregon State University's values and the inclusive environment we strive to foster throughout the university community and within OSU Athletics for all student-athletes and fans", Barnes said in a statement on Monday.

Schnatter came under pressure after a media report that he used a racial slur and graphic descriptions of violence against minorities in a conversation with the company's former media agency, Laundry Service.

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- Add Morehouse College to the growing list of places parting ways with Papa John's.

The letter from Schnatter's legal team, Glaser Weil, said the Board had no authority to remove him as director and said the board's actions were not in he best interests of the company. The company said over the weekend it "specifically requested that Mr. Schnatter cease all media appearances, and not make any further statements to the media regarding the company, its business or employees".

A spokeswoman for Laundry Service has previously declined to comment on the Schnatter incident and did not immediately respond to a second inquiry on Tuesday.

The company has yet to comment to Schnatter's accusation, but continues to distance itself from its founder.

Schnatter also offered an apology telling WLKY that he was repeating something someone else said and was "provoked". So-and-so used the n-word, and we don't use the n-word, and we're not gonna use the n-word.

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