's Arms is the name of the tavern at which the circus company is staying when Sissy
returns with Mr. Gradgrind
and Mr. Bounderby
to find her father gone at the very beginning of the novel. Pegasus, a mythical winged horse, represents the imaginary and fantastical world in which imagination is allowed to soar: a world the Gradgrinds are forbidden to experience. It is the perfect residence, on the other hand, for Sissy's father's circus company, who make the world of magic and fairy stories come to life. This is what gives Sissy such a good heart: free exercise of her imagination and her heart.