'The board asked me to step down as chairman without apparently doing any investigation.
Papa John's is finding it hard to move past its founder's tarnished image.
Schnatter, who remains on Papa John's board, is the company's largest shareholder. "We're not gonna talk about this, '" Schnatter told Louisville radio station WHAS.
For now, the company is pushing Schnatter firmly away. Months earlier, Schnatter had resigned as Papa John's CEO shortly after he publicly blamed the National Football League, a former corporate partner, for the pizza chain's sagging sales.
"As you all know, there's been a lot of coverage about Laundry Service and Wasserman related to the Papa John's situation in the past several days", the email says. "I agreed, though today I believe it was a mistake to do so", Schnatter said. They tried to extort us, and we held firm.
They are taking the "John" out of "Papa John's".
The committee of independent directors with the fewest business and personal ties to the onetime chairman was formed to "evaluate and take action with respect to all of the company's relationships and arrangements" with Schnatter, according to the statement.
"During and after that meeting, the Laundry Service leadership strongly urged that our company retain Kayne West as my co-spokesman in the television spots and other promotions", Schnatter wrote.
Schnatter had already resigned as CEO past year after blaming disappointing sales on the NFL leadership's on the controversy surrounding football players kneeling during the national anthem. The MLB said it is also suspending its "Papa Slam" pizza promotion during games.
Schnatter, who founded the pizza company in 1984, uttered the slur after he reportedly complained that Colonel Sanders of KFC never received public backlash for his racist remarks.
The release goes on to say that since Schnatter is no longer in the management of the company, a sublease agreement that allowed him the use of office space at the corporate headquarters is also terminated. "But they actually wanted to get into that vocabulary, and I said absolutely not".