In the statement, Grissom thanks Schnatter for his two years of service and "his generous support for so many years".
"Regardless of the context, I apologize", the statement says. "Simply stated, racism has no place in our society", he said.
Laundry Service, which is owned by Wasserman Media Group, declined to comment through a spokesperson on Schnatter's remarks or the company's relationship with Papa John's.
Mr. Schnatter already had resigned earlier this year as CEO of the chain, which he built into a national powerhouse, over a sponsorship quarrel with the NFL over the national anthem protests and Papa John's dipping sales.
Papa John's can't get out of its own way.
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It's been a tumultuous time at Papa John's. In 2017, he had blamed the NFL players kneeling during the national anthem to protest racism for his companies disappointing sales.
The racist incident that spurred this was brought to light by Forbes, which reported on a May PR training session involving Schnatter. Schnatter said that when he grew up in IN, people would drag black people behind trucks until they died, the source told Forbes. It's weird and it's freakish and given that "Papa John" was trending on Twitter for much of the day, this latest unforced error becomes yet another indication that his company will continue to struggle.
Although Schnatter apologized, the Trump supporting, anti-Obama pizza man was dragged on Twitter.
Schnatter resigned from the University's Board of Trustees Wednesday hours after the NAACP called for him to step down. on the heels of Schnatter confirming reports he dropped the racial epithet back in May.
The company was started in 1984 in Jeffersonville, Indiana, after Schnatter installed a pizza oven at his father's alehouse and since then, the company has outlets in over 5,000 locations with an annual revenue north of $1.7 billion.
Papa John's shares fell almost 5 percent Wednesday after the report, closing at $48.33.