The band are on another pub tour, this time without any manager. Harry Moon, a fan and songwriter, becomes the band's new musical driving force—although now the girls are writing many of their own songs too. To make ends meet, they do a musical ad for a range of frozen foods called 'Wonder Woman', whose brand image is that of female liberation—though this comes in the consumerist form of microwave ready meals. Moon knows an established rock star Stevie Streeter, and arranges for the band to meet him with a view to becoming his support act. Streeter's act is described as 'sub-Springsteen concept rock', but the reality is far worse.

The newly signed Little Ladies meet with Schreiber at a terrible concept restaurant, where plans to record a single are discussed. Anna and Dee both write songs, but Dee's pop/rock song, "O.K.", is chosen over Anna's more literary effort. Thus begins a growing rivalry between the two friends. Meanwhile, Schreiber outlines her plans to her partner at SM Records, revealing her boundless ambition. The band assemble at the distinctly low-rent Galaxy Studios in Camden Town to record, their first time in a recording studio.

The new single is ready, and Schreiber's hype machine kicks into action. There are T-shirts, badges, caps and even a set of Little Ladies dolls. The band embark on a nationwide promotion tour by InterCity train, accompanied by various freeloaders from the music press and radio stations. In a series of interviews, the distance between the liberated Ladies and the distinctly unliberated mainstream media is highlighted: one interviewer insists on repeatedly asking Dee whether she has a 'steady boyfriend', while other interviewers are more concerned with showing off their own grasp of the music business than actually finding out what the Little Ladies are about.

The single flops, and Anna tries to pin the blame on the fact that her harmonies had been redone by Dee, something that Q had not realised. Anna writes a new song, "Loose Change", and since the band 'owes' her, she is given more space to develop it and sing lead, unaware of its low quality. Kitty strikes a deal with obnoxious entrepreneur Johnny Britten for the Little Ladies to become the nightly house band at the Electric Empire, Britten's Watford club. The fact that Dee is clearly the best singer becomes evident when, for Anna's song, she performs backing vocals with Q — Kitty subsequently changes the lineup so that Dee sings the main vocal, and things sound much better, creating new discourse.

As Anna is drawn more toward Angel, she is also pulled toward drugs. In time, this leads to total paranoia, especially wherever Rox is concerned. Although Kitty tries to pass Rox off as a balance in the vocals, Anna sees her as a threat. She tries to express this to both Dee and Q. Dee doesn't see it that way, and Q is afraid to be the deciding vote. As her unrest grows, Anna tells the group that she wants a divorce.

With Anna out, Q realises that her vocals are far too weak, especially when compared to Dee and Rox. At first, she just fades into the background, but then she too decides it is time to depart. At first, Q enters a deep depression, but the sudden appearance of her oft-married mother gets her back on track.