The lads stop out all night in the warehouse and are awoken when the workers return in the morning. The dropped cigarette in the storeroom smoulders and then starts a fire. Rita packs her case. Ivy threatens Edna Gee with the sack if her work doesn't improve. Edna sneaks off to the storeroom for a cigarette. As she opens the door she is engulfed by flames. As the fire spreads, the workers panic and vacate the warehouse. Tricia suffers from shock and is laid out on the bench. Firemen battle to control the fire. Len settles Rita by saying he'll pay £2 extra a week to Mavis and will charge Rita £1 a week rent for the flat. Ivy searches for Edna as the fire rages on. The residents remember the fire at the maisonettes. The fireman can't control the blaze as the warehouse is full of flammable goods and liquefied petroleum gas.