Papa John's founder, John Schnatter, released more than one-third of his stock into the pizza chain worth $ 107.5 million, according to a securities file, and insisted that the company cannot survive under its current management without him.
Despite dumping the 1.9 million shares, according to a Form 4 application with the Securities and Exchange Commission on Tuesday, Schnatter still had a stake of 9.2 in the company with a value of $ 166 million.
Schnatter held on to his remaining 2.9 million shares and said that the country's third largest pizza franchise chain would soon go bankrupt because he had run the company better.
Papa John & # 39; s founder John Schnatter (photo) has released more than a third of his stock into the pizza chain with a value of $ 107.5 million, according to a Tuesday
Papa John's founder, John Schnatter, says the country's third largest pizza franchise chain is doomed to fail because he had run the company better
& # 39; I feel there is no reason to be in the car if the car crashes, even if you like the car, & # 39; Schnatter told Maria Bartiromo in a telephone interview broadcast on FOXBusiness on Wednesday, explaining why he dumped his shares.
& # 39; Said in other ways, Maria, counting is not an opinion. Why would you or I, or anyone else, want to own so many shares of a company that is going backwards & # 39 ;, he explains further about the November 1 sale.
Schnatter claims that & # 39; Dad John & # 39; s has strayed from his & # 39; clients & # 39 ;.
& # 39; If you don't have your clients, you have nothing & # 39 ;, he told Bartiromo. & # 39; Dad John & # 39; s has abandoned the fundamental principles of transparency, integrity, mutual respect, quality measurement, loyalty, loyalty to franchisees, loyalty to suppliers … Everyone must win & # 39 ;.
Papa John & # 39; s announced a loss of 10 cents per diluted share on Wednesday in the third quarter, with the 3-cent loss analysts being examined by Refinitiv expecting, FOXBusiness reports.
The company also said Chief Financial Officer Joe Smith left, along with other executives. Smith was with the company for nearly 20 years.
Schnatter said that Papa John & # 39; s had a knee-shock response and advised management to take more proactive action.
Schnatter noted that Papa John & # 39; s, which he founded in 1984 from a broom closet in his father's tavern, Mick & # 39; s Lounge, in Jeffersonville, Indiana, has been struggling since resigning as head of the pizza franchise empire.
Papa John's shares fell 3.6 percent after Schnatter stepped down as CEO in December 2017 and sank to 34 percent before the rally took place, FOXBusiness reports.
The former CEO left the company after being criticized for accusing disappointing sales to the NFL & # 39; s handling of player protests during the national anthem.
Six months later, reports revealed that the founder took the & # 39; n word & # 39; had been used during a media training about avoiding PR blunders.
John Schnatter (center) founded Papa John & # 39; s in 1984 from a broom closet in his father's tavern, Mick & # 39; s Lounge, in Jeffersonville, Indiana. He complains that the chain has been struggling since resigning its position as head of the pizza franchise empire
During the telephone conversation with media service Laundry Service, Schnatter tried to downplay his comments about the NFL by saying: & Colonel Sanders called Blacks n *****s & # 39; because he complained that the founder of KFC never made had a public kickback.
He resigned as chairman of the board shortly after those reports came out and then went through a public kickback where he prosecuted the company and hired a PR team to launch a website to tell his side of the story.
In one piece for the New York Post before the third quarter results were announced, he claimed that in August 2018: & i tried to warn my fellow directors and issued a press release that the company's performance would certainly be deteriorating. My prediction has been good for four quarters and since then still.
& # 39; More importantly & # 39 ;, he adds, & # 39; I have noticed since then that Papa John & # 39; s management can focus on cost savings over product quality. Even the pizzas don't seem to be made the way I made them a few years ago & # 39 ;.
& # 39; Leadership & # 39 ;, says Shnatter, & # 39; means taking responsibility for commanding your ship and not using scapegoats & # 39 ;.
He urged the company's management team to & # 39; immediately & # 39; change course and breathe new life into our iconic American brand. I should know because my team and I have built more than 5,000 stores from the start and have taken us through other down cycles & # 39 ;.
But for now, Schnatter is telling FOXBusiness that he has no plans to take over the company at his current price, especially if he believes it & # 39; potentially a $ 15 share & # 39; is.
Papa John's share was $ 60.18 during afternoon trading, an increase of $ 2.99 or 5.23 percent.
Papa John's share (photo) was $ 60.18 during midday trading on Wednesday, an increase of $ 2.99 or 5.23 percent. The founder of the chain, John Schnatter, says he has no intention of taking over the company at the current price, especially if he believes that the & # 39; potential $ 15 shares & # 39; is
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