KKR Sued Over Fleet Farm Restructuring After $1.1 Billion Deal

Members of Fleet Farm’s founding family sued KKR & Co., claiming the private equity giant wrongfully restructured the retail chain to get around payout and veto rights they retained after selling most of it for $1.1 billion.

The lawsuit also targets three Fleet Farm board members appointed by KKR. It accuses them of secretly creating an intermediate holding company, controlled by the asset manager, in a scheme to leapfrog the senior distribution preferences held by the former owners.

The Delaware court fight stems from the general store-style retailer’s sale in 2016 to the pioneering buyout firm. KKR perennially faces ...