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- John Schnatter is asking private equity firms to discuss partnership to buy Papa John's, according to sources at CNBC.
- Schnatter was ousted from his role as president earlier this year when racist comments he made during a conference call were leaked to the press.
- Schnatter owns about 30% of Papa John's, but private equity firms worry about the reputational risk of partnering with him, sources said.
John Schnatter is struggling to let himself go.
The founder ousted from Papa John's PZZA pizza chain has been addressing several private equity firms over the last few weeks to discuss partnership in order to buy the company, CNBC said. sources close to the situation.
Schnatter, who already owns about 30% of Papa John's, is seeking capital to support an offer, according to sources. However, several private equity firms rejected it, worried about the reputation risks inherent in the partnership with him. Meanwhile, people interested in buying Papa John's do not believe that working with Schnatter is the best route to a winning bid, according to some sources.
Schnatter was ousted from his presidency earlier this year when racist comments he made during a conference call were leaked to the press. Since then, he has engaged in a fierce fight against the board of directors of the company, which he accused of having organized a coup d'etat to force his exit . The restaurant chain has also adopted a defense mechanism known as the "poison pill" to prevent a hostile takeover of Schnatter or others.
In the face of the public relations crisis, Papa John's shares have fallen by nearly 40% over the last year. The restaurant chain hired Bank of America BAC and Lazard LAZ earlier this year as financial advisors to repair the damage.
The sources required anonymity, the information is confidential. Schnatter was not immediately available, Papa John's refused to comment.
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