Miss Knag is a longtime employee at Madame Mantalini’s dress shop. When Kate struggles at the job, Miss Knag befriends her. When Kate becomes successful, though, Miss Knag accuses Kate of trying to steal her job. Miss Knag works to turn all of the other employees at Madame Mantalini’s shop against Kate, making Kate’s life miserable. After Madame Mantalini declares bankruptcy due to Mr. Mantalini’s extravagances, Miss Knag becomes a partner at the shop, and the shop bears her name. When Miss Knag becomes a partner in the business, she fires Kate.