Each team had to create a five-piece collection and devise a full fashion show and accompanying video. At least three looks had to contain one of the textile designs in a "prominent" position.
Betsey Johnson was on hand before the challenge started to offer her advice before the teams got down to work. Team Nuts and Bolts consisted of Anthony Ryan, Anya, Viktor, Olivier and Bryce, while Team Chaos was Josh M, Laura, Kimberly, Becky and Bert.
Heidi Klum, Michael Kors and Nina Garcia were joined by designer Rachel Roy and actress Rose Byrne at the runway (browse all the designs below).
Team Chaos - Challenge winners
Anthony Ryan explained that their concept was to incorporate the "chaos" of the show which evolved into the chaos of New York City. They wanted their models not to be overdone and convey the idea they could grab any piece in their wardrobe and look great.
Heidi thought it was one of the best runway shows she had seen on the programme, Michael said the tailoring on Olivier's jacket was one of the strongest tailoring examples he'd seen on the show, Rose said she would wear all the designs (even though she isn't a print person), Rachel loved the cohesiveness, and Nina wanted Olivier's jacket for herself!
The only criticisms were that the sophistication level for some of the designs could have been higher (Michael) and the hair and make-up could have been better (Nina).
Anya was named the winning designer (marking her first time as challenge winner).
Anya's design (L), Becky's design (R)
Team Nuts and Bolts - Challenge Losers
Their concept was a busy New York City woman who has a hectic schedule and runs out of time, reflected in the clock-inspired patterns and phrases such as "cancelled" on their pieces.
Heidi thought the collection was very busy, while Michael and Rachel didn't like the literal interpretation of the clock theme in the patterns. Rachel pointed out a skirt with "cancelled" on it gave off negative energy. Rose didn't think the overall collection was that flattering, while Nina said they made a lot of mistakes and had missed opportunities.
Michael and Nina both criticised the accompanying video. Michael compared it to a "hooker convention" returning home after a night out, while Nina thought it was more like an ad for shoes or NYC cabs.
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In the end, it was Becky and Josh who landed in the bottom two. Heidi thought Josh seemed "very involved" in the fashion show which had been bad and his print missed the mark, while Becky needed to make her own choices as a designer in the real world and her look was weak in a weak collection.
Becky was eliminated. "I don't think I deserved to go home today," she said. "I know I'm a good designer. Maybe my designs were more commercial than some of the designers have been showing in this competition."
She added: "I don't think I did what I set out to do. I came here to win and obviously I didn't win. I'm not done designing by a long shot. I'm going to start planning my future. I want to have my collection - I need a vacation though because this is tough!"
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Browse a gallery of the final designs below: