Moray is anxious to move forward in his expansion of The Paradise, but one obstacle stands in his way: the barber next door, Bradley Burroughs, will sell his shop only on the condition that he's made a junior partner in The Paradise. Dudley warns Moray to reject the deal, but Jonas persuades Moray to give Burroughs what he wants for now – the barber can soon be proven unfit, nullifying the partnership, if he's kept on the shop floor, where his personality and presence will demonstrate his unsuitability.
Meanwhile, another of the small, independent businesses close to the Paradise receives a boost. Katherine, desperate to win Moray back, hopes to capture his attention by antagonizing him, and very publically patronizes Edmund's shop, causing a stir by ordering a dress. While she is only using him to toy with Moray, Edmund joyously throws himself into the job, delighting in his craft, confident that his fortunes are finally changing.
In ladieswear, Denise approaches Miss Audrey with a new idea: Gentlemen’s Afternoon. This weekly event, Denise suggests, will pique the curiosity of men who might wish to purchase a gift for their wives. Miss Audrey rejects the idea on grounds of impropriety, but when Moray solicits fresh ideas, she suggests the event as her own notion. Denise is furious but silent. But the first Gentlemen's Afternoon is cut short when the lady customers, scandalized that their husbands might be engaging in impropriety, threaten to boycott the store. In response to the disaster, Moray asks the girls to come up with something special that appeals directly to the store's female customers.
Downstairs in haberdashery, Burroughs is installed on the shop floor where his ineptitude and depravity revolt the shop girls. When Jonas suggests that it might be time to cut his losses and leave, Burroughs threatens that he has incriminating evidence against Moray surrounding the death of his wife. Ever-protective of Moray and the memory of his deceased wife, Jonas decides that Burroughs must be dealt, and is given license by a distracted Moray to do whatever he thinks is best.
Katherine continues to ignore Moray and flaunt her patronage of the small stores, which spurs him to confront her over her little game, embarrassing her in front of her party guests. He tells her that she is toying with people's lives for a hopeless cause. Their argument escalates, she slaps him, and he kisses her. Her goal attained, Moray's attention captured, Katherine returns to Edmund's shop to cancel her order. Crushed, Edmund berates Katherine for destroying a man's pride and hopes on a whim. With dignity, he tells her he will still finish her order, as a man true to his word.
Meanwhile, Denise, undaunted by the calamitous Gentlemen's Afternoon, pitches a new idea to Moray: Ladies After Dark. They invite an exclusive list of clients to a secret lingerie show after-hours. Moray and Denise connect through their passion and ambition, and when the event is a triumph, it brings them closer together.
But in haberdashery, things are unimproved as Burroughs accosts Pauline. Dudley demands that he be dismissed instantly, but Jonas persuades Moray to give him time to resolve the situation his way. On the pretence of a meeting with Moray, Jonas collects Burroughs in a carriage. Unseen, Arthur watches it drive away, and the next morning, Burroughs is nowhere to be seen. Jonas reveals the details of Burroughs' threat of blackmail to Moray, but assures the barber's silence. Burroughs, he assures him, will not be coming back.
Katherine receives the beautiful gown that Edmund crafted and is filled with shame and resolve to stop hurting people. She pleads with Moray that they no longer play games; she just wants to love him.