I believe what is missing is a Brick and Minifig's attorney with a law degree.

This is why you shouldn't buy a business for 1 dollar because you can inherit its debts.

If they were smart, they took the "inventory" as payment for some imaginary debt, bankrupting the store without taking ownership of it.

Hopefully, the courts will see through that tactic, and add a contempt charge on top of all the civil penalties.

I don't think they won in court, B&M just didn't respond so it went to a default judgement

It is my understanding that they sued the franchise, which then closed, and not the parent corporate entity.

While they won against the franchise due to the default judgement, they didn't win against corporate. The store that is now closed is the franchise they sued.