Baxter backed up away from the closet altogether to let her out and to give them both some space. She didn't need anything from the closet, but was in the closet... No he wasn't going to question it.

"What was it you needed, I was on my way out, but I can find somebody to assist if needed?" That would be easiest right? The coward's way out, but easy. No need to prolong this awkward interaction any longer than necessary after all...