Papa John’s says founder John Schnatter has resigned as chairman of the board.
The company made the announcement late Wednesday, hours after Schnatter apologized for using a racial slur during a conference call in May.
The apology comes after Forbes cited an anonymous source saying the pizza chain’s marketing firm broke ties with the company afterward.
Forbes said Schnatter used the N-word during a media training exercise. When asked how he would distance himself from racist groups, Schnatter reportedly complained that Colonel Sanders never faced a backlash for using the same word.
Schanatter also resigned from the University of Louisville Board of Trustees, WAVE-TV reported.
WAVE-TV in Kentucky also reported Schnatter faced more backlash as the mayor of Jeffersonville, Ky. stripped the “John H. Schnatter” name from a historic gym he donated to restore in his hometown.
In a statement released by Louisville, Kentucky-based Papa John’s, Schnatter said reports attributing use of “inappropriate and hurtful” language to him were true.