Lucille Ballentine arrives in town with her newly-wed and somewhat wealthy husband in tow. Although exuberantly cheerful, the girls sense she is troubled. Denise and Mr Ballentine discuss the business of the Paradise; impressed, he suggests she compiles a formal proposition. She tells Moray of this potential investment but he is dismissive. Lucille confesses to Clara she doubts her feelings for Ballentine and is resolute she must leave him. She soon regrets her comments and attempts to buy Clara's silence. Denise's meeting with Ballentine goes well, and he promises to return with a decision.
Dudley is frustrated by Moray's absence at the store and his elusive behaviour. He chastises him for his disinterest in Ballentine and accuses him of rivalry towards Denise. Lucille suspects Clara has broken her confidence. Learning her suspicions are wrong, she is further convinced she is undeserving of Ballentine's love. Clara implores her to appreciate her good fortune. Ballentine announces he wants to invest in the store, but Denise's elation is punctured by some devastating news.
Tom's behaviour is disturbingly spiteful, and a frightened Katherine confides in Moray. Unbeknownst to them Tom has been watching their intimacy grow. Ready to banish Moray from The Paradise, Jonas convinces Tom to bide his time. Fenton is pleased to hear that fractures are appearing between the Westons. He threatens to build a rival store if Tom refuses to sell. Tom finds Flora in a state of distress. Her fears that Katherine will be driven away move Tom and he offers Katherine a truce, an end to the fighting. Katherine accepts the olive branch and decides to tell Moray their friendship must end in order to protect her family. But this final meeting of good intentions unravels, leaving devastation in its wake.