Poison Pill Adopted Against Founder of Papa John’s
On Sunday, Papa John’s board voted to adopt a poison pill in attempt keep founder John Schnatter, who stepped down as the board’s chair, lost privileges to his office at the company’s headquarters, and was removed from some marketing materials after using a racial slur during a conference call in May.
The poison pill adoption comes at a time when, Schnatter, who has reversed course and lawyered up, is intimating that his personal attachment to the brand and 29.4% stake in PZZA won’t go out without a fight.
In the wake of this turmoil, the company’s stock has seen a sharp decline. Following Schnatter’s resignation on July 12th, the stock has dipped 9%.