Thanks to an unknown informant, Henri is now in jail and police are searching Selfridges and Harry’s house for clues to the Frenchman’s alleged spying. At this worst of all possible times, Harry is secretly on his way to Germany on a mission for British intelligence.
In the dark about their boss’s whereabouts, Mr. Crabb and Mr. Grove take charge of the store and do their best to deal with the escalating crises. For one, a letter arrives announcing the death at the front of the first Selfridges soldier to fall. Gordon steps into his father’s shoes to console the family.
Outraged at Henri’s arrest, Agnes visits him in jail and learns that he is simply an obsessed lover in search of an old flame, Valerie Maurel, who has been leading Henri on a wild goose chase—from New York to Berlin to London, and now she is apparently back in Germany. Infatuation, not espionage, is Henri’s only crime.
Agnes enlists Victor’s help in smoking out the store employee who ratted on Henri. Clearly, it is Mr. Thackeray. But the head of fashion must be made to confess, which he does after Victor tricks him. Notified of the misdeed, Grove browbeats Thackeray into recanting his allegation at the police station. But the authorities won’t release Henri, since they have learned he is wanted for theft in America.
Then an even bigger disaster strikes: Lord Loxley’s kickback deal with leather manufacturers has led to shoddy boots for the troops. With the shoe scandal about to hit, Loxley cleverly foists the blame on Harry—for insisting that Loxley use substandard suppliers. The lowdown lord even convinces the skeptical reporter Frank Edwards to break the story—aided by Frank’s editor, who is desperate for a scoop. There are even rumors that Harry has been spotted boarding a train bound for Germany. Public relations for Selfridges could not possibly be worse! And Harry is not around to salvage his good name.
While Kitty breaks up with Frank over his story, Josie’s romantic prospects are improving, much to her surprise. It begins when her old adulterous lover, Grove, accuses her of harming her reputation by lodging the handsome young Florian, whom Grove suspects of amorous intentions. This seems absurd to Josie. But just to clear things up, she mentions the matter to Florian, who immediately confesses his love for her and gives her a passionate kiss. Josie briefly reciprocates, before fleeing in a confused state.
In other action, Lady Mae is finally fed up with her husband’s reptilian behavior and leaves him, taking only her maid and two suitcases. But she soon discovers that her friend Rose wants nothing to do with her, since Mae had vouched for Loxley’s honesty. Rose also cuts off Delphine when she learns that the cabaret queen knew about Harry’s secret mission but didn’t tell her.
Finally, Agnes returns home from an outing with Victor to discover a telegram with news about her brother at the front.