Alf gives Ivy a rise in gratitude for all her support. Reg introduces himself to Ivy and tells her that she must be mad working for Alf. Gail is alarmed to find Audrey is making plans to run off to Canada with Malcolm Reid. Percy tells Emily that he'll go with her to Rhos-on-Sea but she tells him that she's going alone. A firm called Mellors go bust owing Ingram's £50,000. Mike is depressed. Alf accuses Reg of trying to steal his staff. Audrey discovers that Malcolm is getting married next month to someone called Ruth. She breaks down.