Denise is upset when she learns that Moray has spent the afternoon with Katherine, but her anxiety turns to heartbreak when she discovers her fiance shared a kiss with the wife of store owner Mr Weston!
Yet while Moray and Denise’s relationship is on the rocks, everyone in town – including The Paradise’s staff – is gripped by ghost fever when a magazine begins publishing stories about a haunted house.
When Moray persuades the publishers to let the store sell the final chapter before its rivals, he and Denise decide to turn The Paradise into a haunted house to give customers an experience they’ll never forget.
Mr Weston hires a photographer to capture the moment and Denise comes up with the idea of selling Paradise Postcards. But while the postcards sell very well, Mr Weston comes to regret his decision when Clara chooses the photographer over him – turning down the store owner’s advances once again.
Yet just as Moray and Denise seem to be getting along, Lady Katherine drops her bombshell. Denise is able to forgive Moray, but Mr Weston can not forgive Katherine for the humiliation she has caused him and decides to send her away to the Alps, thus seperating her from his daughter Flora, whom Katherine adores..