Eileen and Nick's troubles with the government have put Bombshell on ice for now, so her big plan is to muscle her way into an American Theatre Wing gala, where Karen will sing and Eileen will try to resurrect the show's reputation in front of everyone who's everyone in New York theater. But the organizers disinvite her, so after Tom convinces Julia to stop moping over her failed marriage, they crash the party with Eileen, then haul in Derek and Ivy so they can put on a little show. It's all very intrusive and what Saturday nights at Anne Hathaway's house must be like.
Karen is still infatuated with the songs of bartender-slash-composer Jimmy, but she's totally not interested in him, no, of course not. So she wrangles some music out of his lyricist partner, Kyle, as well as an invitation to a party at their place. And of course Karen makes a mess of everything by singing Jimmy's song to him in the middle of the party. He gets furious and insults everyone, but eventually, after Kyle gives him the I Am the Only One Sacrificing for This Friendship and You Owe Me a Solid speech, he makes nice and gives Karen some songs, which she shows to Derek.
Derek. His lady troubles are multiplying exponentially; now there are six dancers accusing him of sexual harassment, and after he hits on a woman in Jimmy's bar, her boyfriend punches him and Derek hallucinates that Ivy and Karen are singing the Eurythmics to him. He gets plastered and slurs his feelings all over Ivy, who puts him back together because she is a champ. Does he appreciate it? He does not.
Although he does, at least, tell Ivy not to quit the business, which she was considering after she and Sam ran into an old costar, who's quit acting and now has a stationery shop and a guesthouse. But Derek reassures her that she's special and talented and she shouldn't quit. But he still picks Karen over her, because he is a dumb-dumb.
Karen sits on the steps in front of Table 46 -- the bar where Jimmy works -- waiting for him. He arrives and asks what she's doing there. She wants to know why he didn't return any of her calls. He says girls usually call to yell at him. She wants to talk about his music and would like to hear more, but he says there's nothing to hear. She asks if Kyle was lying when he said it was part of a whole musical, and Jimmy's being very chill while Karen basically interrogates him as if she has a right to his time.
He calls her on it and asks if she's always so uptight and clenchy, then says his shift is over soon if she wants to hang out. She does not, and cannot believe that someone without a starring Broadway role to offer her would importune her with such an indiscreet proposition! She stalks off and Kyle comes outside, asking if that was Karen Cartwright. Jimmy says he has no idea, which is how you know he's the straight one in this partnership.
Kyle says Karen's a big deal and can help them, but Jimmy insists they're going to do it on their own. Karen's calling Derek to tell him that the thing she thought was something didn't work out when Kyle catches up with her to apologize for Jimmy's behavior. He says Jimmy is really protective of his work, and Karen says she wanted to play it for Derek, which makes Kyle's eyes light up with dollar signs. He asks her to meet him after his shift.
Eileen gets out of a Town Car, hollering into her phone about how she knows no one is getting paid and she's sorry but she hopes to straighten everything out soon. She goes into the Brill Building, where Derek is proclaiming it a miracle that he was able to get any work done at all while Tom and Julia were writing and rewriting causing "a circus," as he calls it, which amuses Tom, since Derek was the one with a clown car full of Marilyns.
Eileen tells them to stop squabbling like toddlers, so Derek turns his pique on her, asking if she didn't think it was funny that a bartender who doesn't look like he has a checkbook had millions of dollars in cash available to bankroll a Broadway musical. Eileen is not in a mood to put up with any of Derek's shit since she just got a full-body audit from the feds, but everything is now in order. She says they're still alive, and Karen is performing for an American Theatre Wing gala tonight in front of everybody's who's anybody, so that will keep the show front and center in theater people's minds. She asks them not to take any other jobs just yet.