Mike refuses Fred's offer of a loan to bridge the gap until the insurance money arrives. Karen is horrified as the wedding bills arrive, particularly now she's out of a job. Mike visits Nick in hospital. Nick denies knowing what started the fire. Sonia tells the girls that the football kits all went up in smoke. Nick promises Maria that they'll look for somewhere to live immediately. Mike tells the anxious factory girls that until the insurance company pays him, he can't pay them, or start to rebuild the factory. Janice thanks Nick for saving her life. She admits that her cigarette started the fire. Harry relates the story of the fire, assuming that Mike knew that Nick wasn't there. Mike orders Janice to keep quiet about her part in the fire, as his insurance would be void if it emerged that the fire was caused by somebody smoking. Liz makes her peace with Tracy for the sake of seeing her granddaughter.
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