Spirits are high at the Paradise in anticipation of the annual staff outing. Unbeknownst to the staff, however, Tom has overruled Moray's suggestion to take them to the Music Hall and it falls to Dudley to give them the unhappy news. Applications for head of Ladieswear flood in, and Clara and Denise find themselves the object of staff gambling. Denise's excitement is punctured when Moray asks her not to apply, worrying that Katherine champions her for the role. Trying to suppress her desire for the job, Denise begins to wonder if Moray even thinks her capable of it and an argument leaves them both reeling. Indignant, Denise makes an application. Katherine arranges a treat for Flora, a beautiful doll, imported from France. Flora's guileless enjoyment in the doll irritates Tom, and he begins to question whether her indulgent and unstructured days are rendering her ignorant. Having won his trust, Jonas suggests to Tom that losing favour with the staff is dangerous and will only endear them to Moray. Tom seizes the opportunity and asks Denise for help.