Motel 6 drops ad agency after founder said pitch was 'too Black’ for the chain's 'white supremacist constituents’

The founder apologised for the comments but insists he does not tolerate racism

The Motel 6 lodging chain has reportedly ended its business with The Richards Group - one of the country's largest independent advertising agencies - after the advertising company's founder decided an ad pitch was "too black" for the motel's "white supremacist constituents."

Motel 6 terminated its ties to the Richards Group after learning about the comments.

"We are outraged by the statements made about Motel 6 and our customers by a member of the Richards Group during one of its internal meetings," a spokesperson for Motel 6 told CBS MoneyWatch.

Home Depot and Keurig Dr Pepper have also severed ties with the company following the incident.

The story was first reported by Ad Age.

The ad pitch that prompted the comment was meant to celebrate black artists.

Approximately 40 people participated in the pitch meeting.

Stan Richards, the 88-year-old founder of the Richards Group, confirmed that he made the comments and issued an apology for the remarks.

“Last week, we were reviewing creative for what was to be a multicultural campaign for one of our clients," Mr Richards said. “Two of our creatives, both white, presented a direction I thought was not multiculturally inclusive enough. I misspoke and commented, using words I greatly regret, including three I never should have said: ‘It’s too black.’”

He insisted that he did not use racial slurs and that he does not tolerate racism in his business.

“To be clear, though, I have never used racial slurs about any ethnic group nor tolerated it from anyone around me,” Mr Richards said. "Those words were said innocently, but they were hurtful to members of our staff. I have apologized for that, as I should have. Having spent much of my adult life fighting prejudice, I should have known better.”

Glenn Dady, who will take over the Richards Group when Mr Richards leaves the role, told the Dallas Morning News that while the company's brand "has been tarnished," it has never "been party to nor tolerated racism in any form."

“As the person now responsible for all the operations of The Richards Group going forward, I commit to doing everything in my power to stay focused on that goal," Dady said in a statement. “We understand and regret the pain and concerns of all those who were deeply troubled by the words our founder spoke. He can’t take them back. We can only ask for forgiveness and promise to learn and be better.”

Motel 6 has had its own bad press with regard to issues of race.

A Motel 6 location in Phoenix was accused of alerting US Immigration and Customs Enforcement any time guests with Hispanic-sounding last names checked into the motel in 2017.

Motel 6 claimed the policy was the sole doing of two local franchises and that they had been told to stop.

Late, the hotel chain agreed to pay $7.6m to settle discrimination lawsuits caused by the policy, and another $12m a year later to settle a similar lawsuit brought on in Washington state.