Papa John's CEO Travis to resign

LOUISVILLE, Ky. - Papa John's International Inc. said Thursday its chief executive officer, Nigel Travis, has resigned and its founder and chairman, John H. Schnatter, will take over as interim CEO effective immediately.

The pizza chain said that Travis, who had been the company's president, CEO and a member of the board, was leaving to pursue another opportunity. It did not specify what that was. The company said its board and Travis agreed that his employment would continue through Dec. 30.

The board of directors has formed a committee to look for a permanent replacement.

Schnatter founded Papa John's in 1985. He had been executive chairman from 2005 until May 2007 and chairman of the board and CEO from 1990 until 2005. He was also president from 1985 to 1990 and from 2001 until 2005.

The company's franchisees have been struggling to get financing amid the tightening of the credit markets, which is due to the global economic slump.

Last month the pizza-delivery company said it will provide loans and offer some cost and royalty rate relief to its franchisees.

The fast-food chain said it would convene a "lender's summit" to bring together regional banks and other lenders to explain its business model in a bid to expand credit to franchisees.

Papa John's also aims to try to cut costs for franchisees by modifying its cheese pricing formula and provide more marketing support beginning in the fourth quarter of 2008.

The company has said it also will suspend collecting a 0.25 percent increase in the royalty rate paid by franchisees. The increase was slated to go into effect in January.

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