Neiman Marcus Bankruptcy Ends, Marked by Arrest of Nemesis (2)

Neiman Marcus Group Inc. won court permission on Friday to leave behind the debts and drama that pushed it into bankruptcy, just a day after its harshest critic was arrested on federal charges stemming from the case.

A bankruptcy judge in Houston approved a plan that hands ownership to creditors in return for forgiving about $4 billion of Neiman’s $5.5 billion in borrowings. When all the paper shuffling is done in the coming weeks, the luxury department store will be still be in business, presumably in better financial shape to compete in a cutthroat retail environment.

“Most companies have been ...