Fred’s Collapse Prompts Creditors’ Call to Probe Owner Alden (1)

Creditors of bankrupt Fred’s Inc. are calling for an investigation of Alden Global Capital LLC’s management of the retailer, arguing that the hedge fund “profited handsomely” from its “fast and unexpected demise.”

Alden took a controlling stake in the Memphis, Tenn.-based retail and pharmacy chain in late 2016. But a series of Alden’s transactions and business decisions benefited the firm at the expense of Fred’s employees and creditors, a committee of unsecured creditors said in an Oct. 4 filing at the U.S. Bankruptcy Court for the District of Delaware.

The committee is asking for a court order that would require ...