Seven years after suffering a mental breakdown during a performance of "Hamlet" at the New Burbage Festival, Geoffrey Tennant is struggling to make ends meet, managing the dilapidated Theatre Sans Argent. Oliver Welles, still the artistic director at the festival, is mounting his tenth identical production of "A Midsummer Night's Dream", and is worried that he has lost his creative edge. Richard Smith-Jones, general manager of the festival, attempts to save the funding as their sponsor, Lenstrex, goes through a change of management. The new Lenstrex liaison, Holly Day, seems interested in the festival…and in Richard.

Having been named interim creative director of the festival, Geoffrey wisely cedes directing the festival's new production of Hamlet to a visiting director, but is distressed when the board chooses his long-time nemesis Darren Nichols. Richard and Holly go to Toronto for an evening of "real theater". Kate and visiting movie star Jack get closer. Geoffrey manages to alienate everyone when he is interviewed by a theatre critic, then gets drunk and challenges Darren to a sword duel.