TO CLOSE

Backlash was quick after reports that Papa John's founder, John Schnatter, used the word-N. He resigned as president of the company and director at the University of Louisville.
Wochit

The new logo proposed by Papa John(Photo: US Patent and Trademark Office)

LOUISVILLE, Ky. – International Papa John's declined to comment on report released Wednesday on an auction to sell to other companies.

Reuters, citing unnamed sources, said the Louisville-based company had sent this information this week and hoped to receive the first round offers by the end of October.

A spokesman for the company said he did not comment on "market rumors".

Meanwhile, a spokesman for Papa John's deposed president, John Schnatter, denied on Wednesday a report that he has sought help from private equity firms to try to buy the world's third largest pizza chain.

Also citing unidentified sources, CNBC reported Wednesday that Schnatter, which owns 30% of the company, is seeking help to buy the rest. In July, he was ousted from his position as president after learning he had used the word N in a media training session.

More: Papa John's latest ad is trying to distract the attention of founder John Schnatter

More: The group calls for a boycott of pizzas by Papa John

CNBC said several private equity firms had rejected it because they were concerned about the "reputational risks inherent in partnering with it".

In a statement, a spokesman for Schnatter said he had "not contacted or had discussions with a private equity firm or any other entity to buy Papa John's. Such a report on a potential transaction involving Mr Schnatter is totally and completely false. It is unfortunate that CNBC published this false story without first contacting Mr. Schnatter to get the facts.

Reuters reported last month that the company had hired Bank of America Corp. and Lazard Ltd. to prepare a sale.

According to the Wall Street Journal, quoting independent analyst Mark Kalinowski, Arby owner Inspire Brands Inc. announced this week the purchase of Sonic Corp. for $ 2.3 billion. , Cracker Barrel and Chipotle Mexican Grill.

Schnatter, who founded Papa John's, filed two lawsuits against the Delaware corporation, where he is incorporated, seeking information on his removal and expulsion from the Louisville headquarters.

Last week, Ad Age, a trade publication, said that Papa John's had filed new logos with the US Patent and Trademark Office that was giving up the name of his name in order to stand out from its founder.

Papa John's employs approximately 120,000 people worldwide, including franchise stores and approximately 1,200 in Louisville.

Its stock price has fallen about 32% over the past year, although PZZA has slightly increased Wednesday 8.5%, closing at 50.14 on the Nasdaq.

Follow Andrew Wolfson on Twitter: @adwolfson.

Read or share this story: https://usat.ly/2xB7K3d