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When first encountered, the smithery door had been boarded up by Jimmy who was blackmailing Fogerty with the information regarding the fake golden items he had sold over the years. Jimmy also kept Fogerty under watch and was threatening to kill him if he tried to reopen his store. The store can be reopened as soon as Jimmy the Knife is killed.
There is a secret entrance into the shop, reachable from the other side of the canal, either by climbing across the north wall or by climbing up from the canal as soon as the water level is low (using the wheel in the pump house).