Schnatter, lawyers send letters to Papa John's Board of Directors

John Schnatter

Papa John's founder John Schnatter reportedly said he didn't want to work with singer Kanye West because he uses the N-word in his lyrics, according to a letter he sent to the company board of directors.

He bought three units in a new condominium-and-residence complex in Deer Valley for about $23 million, The Wall Street Journal reported.

Schnatter remains on the board and still owns 30% of the company's shares. So-and-so used the n-word, and we don't use the n-word, and we're not gonna use the n-word.

Papa John's and Laundry Service did not respond to requests from Fortune for comment. That ownership position ensures that Schnatter will be a key figure for the company in the coming days, despite the fact that he no longer holds an official role in its operation.

The disgraced founder of Papa Johns decided that he should play the victim in his controversial situation. "I'm like, 'I'm not paying you $6 million, '" he told the radio station. In other words, he's going to be more than fine. Schnatter wore a Papa John's shirt during the interview.

'Yeah, they tried to extort us.

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A representative for Schnatter declined to comment on whether he was considering legal action. "I agreed, though today I believe it was a mistake to do so", Schnatter wrote in the letter obtained by CNBC. 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". Same-store sales in North America, similarly, dropped 5.3 percent during the first quarter, as its lost ground to Domino's and Pizza Hut.

Schnatter had already resigned as CEO a year ago after blaming disappointing sales on the NFL leadership's on the controversy surrounding football players kneeling during the national anthem.

According to Fox Business, Schnatter was telling executives during the call that KFC founder Colonel Harland Sanders had 'called black people (the n-word)' without scrutiny.

While Schnatter made repeated apologies during the interviews, saying that it was wrong to use the word regardless of context, they only seemed to deepen a controversy that has engulfed the company he founded.

The company has also formed a special committee of independent board members to evaluate Papa John's relationship with Schnatter. "But they actually wanted to get into that vocabulary, and I said absolutely not".

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