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Still, with Sinister's prompting, they agree to hire Stitch and Sew and give them a long list of items to be made for the next day's Royal Procession honoring poor Lester the Lost. The Emperor is intrigued, but the Empress is suspicious. Stitch reveals that they only make a very particular kind of clothing - clothing that can only be seen by the most wonderful, smart, savvy people…clothing that is invisible to fools and nothings. ("Stitch and Sew - Reprise") The Emperor is very interested in the kind of clothes they make. Verity hides behind the throne as Sinister enters and introduces Stitch and Sew to the Emperor. ("If I Could Be A Princess") They are interrupted by the Royal Court. They laugh, thinking how nice it would be if that were really the case. Chester looks at Verity through the glasses and sees a princess. Chester reveals that he is also an orphan, but when Verity looks at him through her magic glasses, she sees a prince! Verity explains that the glasses always show the truth, no matter what. Verity explains that her name means "The Truth" and reveals magic glasses given to her by her aunt before her aunt died, leaving her an orphan. Chester enters singing "The Emperor Needs New Clothes" and is interrupted by Verity, a poor scullery maid from the Royal Kitchens. Not wanting to seem uncouth, Sinister admits that he has heard of Stitch and Sew and agrees to introduce them at court. Sinister and Lady Winifred aren't so sure, but Stitch explains that everyone "in the know" has heard of them… and that only people who are out of the loop haven't. They introduce themselves as world-famous tailors. Sinister meets Stitch and Sew at the Palace. They decide to pull the wool over the eyes of everyone at the castle by pretending they're tailors who make invisible clothes! ("Stitch and Sew", "Knit One, Purl Two") After they work out their routines, the two schemers head over to the Palace to try their luck. Stitch he convinces his friend to call himself Mr. Where can they possibly go? They've been run out of Lands End, Dead End and Graves End… the only choice left is Wits End! The Royal Herald enters with Sinister's Proclamation: The Emperor needs new clothes…and new tailors! One stranger takes charge. Two strangers stand at the Crossroads at their wits' end. The Court joins Sinister in his new proclamation and gets the Emperor so excited about the prospect of something new that he cannot help but agree to Sinister's plan. Sinister reassures the Emperor and says he'll find new tailors - all he needs is for the Empress to sell some of her jewels to cover the bill. ("Blow Your Own Trumpet") If that wasn't bad enough, they've also had to let the Royal Tailors go - no one is left to make the Emperor's new clothes! The Emperor sends for Sinister the Prime Minister, whom the Empress believes is embezzling money from the royal coffers. He needs new clothes - immediately! The Empress enters tooting a horn and explains that the kingdom is out of cash - in fact things are so bad that she has to play her own fanfare. After hearing his Court list his thousand upon thousands of pieces of clothing, the Emperor decides he has NOTHING to wear to the Royal Procession honoring his missing son. ("Welcome to the Palace") The exterior of the Palace opens to reveal the Throne Room. We meet the remaining members of the Court: Chester the Jester, Sinister the Prime Minister, Lady Winifred of Wardrobe, Sir Ivan of Inventory, and the Royal Herald. Emperor Maximilian the Most and Empress Carlotta the Least reign supreme over an almost bankrupt kingdom.
