Upon arriving at the Lucky Smells Lumber Mill, the Baudelaires are forced to work by the owner Sir, who blames their parents for starting a fire that destroyed the entire town. While investigating the workers' unnaturally happy behavior, Klaus' glasses are broken by the Hook-Handed Man posing as Foreman Flacutono, and he visits local optometrist Georgina Orwell, who puts him into a hypnotic trance. Georgina is revealed to be Olaf's old flame. Later that day, the siblings learn that two visitors are waiting to see them. Believing that their parents are still alive, the three are shocked to instead find Orwell and her receptionist "Shirley St. Ives", who is a poorly-disguised Olaf.