Jim resigns himself to losing the job to Johnny. Liz tells one time lover Johnny about Jim wanting the job and how she doesn't want him to have it, so Johnny gives it up. Mike discovers his travel bag order has been cancelled. Mike is outraged to discover his workers have undercut him. Rita feels she would like to move out of No. 7 as it's full of bad memories. Rita decides to buy the shop and flat opposite Alf and Derek is taken on by Victor.
