The actions of Papa John’s International Inc. were shot after a report by the company’s founder, criticized for the use of racial slurs, John Schnatter He reported that he had conversations with Wendy’s Co., where the possibility of a merger between companies was discussed.
The negotiations with Wendy’s were preliminary and began before Schnatter resigned his position as CEO of the company. However, since the incident, these negotiations have not resumed, reported Wall Street Journal.
Investors applauded the news with hopes of attracting the interest of potential buyers to save this company in distress. Shares rose 7 percent in New York. However, they have lost approximately one third of their value in the last year.
Schnatter’s spokesman, like that of Wendy’s and Papa John’s, said the companies will not comment on market rumors.
Schnatter, 56, has faced negative reactions since last week that Forbes reported that Papa John’s founder used a racist term during a training session with the media agency. Laundry Service.
Schnatter acknowledged using the insult and added that it was part of the context of an exercise, but that he is not racist.
Thus, he resigned his position on July 11.
This was the last in a series of mistakes committed by the founder of the chain, who has already left the position of CEO due to the controversy generated by his criticism regarding the demonstrations of colored players of the National Football League (NFL) where they were stuck during the national anthem American in the form of a protest against racism in 2017.
However, Schatter is still on the board of the company and owns almost 30 percent of Papa John’s shares.