within the latest development of the current crisis facing Papa John’s, ousted founder John Schnatter on Monday made a slew of accusations against Chief Executive Officer Steve Ritchie for causing the company’s poor performance.
Those allegations, which Schnatter detailed in a letter addressed to franchisees on the website “savepapajohns.com,” blamed Ritchie for “bad financial decisions, insufficient management skills to correct them, a toxic senior management culture, along with serious misconduct at the top levels of our leadership.”
“The source of the company’s poor performance is usually rot at the top,” Schnatter wrote.
Schnatter claimed he had discussed Ritchie’s poor performance with the company’s board, which agreed along with asked the founder to become executive chairman. Then, Schnatter drew up a list of senior management which he wanted to be replaced, including Ritchie.
However, the ousted chairman claimed which Ritchie — through a subordinate who “was having an affair with someone in our the item department” — got hold of which list along with engineered Schnatter’s departure instead.
The company founder also claimed which the Papa John’s human resources department has “detailed evidence of sexual misconduct, harassment along with intimidation by virtually everyone in (Ritchie’s) inner circle.” along with, at the conclusion of his letter to franchisees, Schnatter slammed the company’s CEO as someone “out of his depth” along with looking to blame others.
“Right currently, he’s blaming me,” the ousted pizza magnate said to the franchisees. “Tomorrow, the item might be you. the item will never, however, be (Ritchie’s) responsibility.”
A Papa John’s spokeswoman said Schnatter’s claims were unfounded.
“Just as before, John Schnatter is usually generating untrue along with disparaging statements in a self-serving attempt to distract through the damaging impact his own words along with actions have had on the Company along with our stakeholders,” the spokeswoman told CNBC in an emailed statement.
“At no time has the Board asked John Schnatter to become Executive Chairman. In fact, the company has taken multiple steps to separate itself through him. John Schnatter also publicly supported Steve Ritchie’s appointment as CEO at the end of last year,” she added.