Girard Has Ally in Battle for Pic ‘N’ Save : Takeovers: Former company executive Bill Thomas has joined the investment group in its effort to control the firm and oust its chief.

An investment group waging a battle for control of Pic ‘N’ Save disclosed Monday that it has gained a key ally, a former executive of the close-out retail chain who owns 4% of its shares.

The investment group, Girard Partners, also acknowledged that it plans to dump Pic ‘N’ Save’s current chairman and president, Lewis B. Merrifield III, if it buys the company.

Joining Girard’s effort is Bill M. Thomas, an executive with Pic ‘N’ Save from 1971 until 1987, when he resigned as its executive vice president and chief financial officer. Thomas, who is in his mid-50s, quit about five months after Merrifield became Pic ‘N’ Save’s chief executive.

Thomas is believed to be the company’s biggest individual shareholder. He “brings to our team some really invaluable experience,” said David H. Batchelder, the La Jolla financier who leads Girard.

In a filing with the Securities and Exchange Commission, Girard said it will nominate Thomas for a seat on Pic ‘N’ Save’s board at the company’s annual meeting on June 20. Girard already has slated four other nominees for director’s seats in an effort to gain a majority on the board. Taken together, the shares held by Girard and Thomas amount to nearly 11% of Pic ‘N’ Save’s stock. The alliance could pump new life into a corporate battle that has lagged since Girard first disclosed its holdings in Pic ‘N’ Save on April 11. Girard, citing slumping profits at Dominguez-based Pic ‘N’ Save, has said it hopes to either acquire the company itself or sell it to another buyer after seizing control.

In Monday’s SEC filing, Girard said if its buys Pic ‘N’ Save, it plans to offer a minority interest in the company to Thomas. It would offer the same to Pic ‘N’ Save’s current senior executives--with the exception of Merrifield.

Girard said it would try to retain Merrifield as an executive with the company only until a sale is arranged. At the same time, it would leave the door open for Arthur Frankel, former chairman and chief executive and a current member of Pic ‘N’ Save’s board, to stay with the company.

The disclosures came after the stock market closed Monday. In over-the-counter trading, Pic ‘N’ Save’s stock was down 25 cents, closing at $13.125. Pic ‘N’ Save officials declined to comment.