They don't seem to understand, that there is no way out of it except giving the guy all the Lego sets or 200k dollars and saying "we are very sorry" multiple times.
They're still trying to save their face and money and it might ruin the whole franchise.
They keep saying unauthorized consignment agreement. Except that they've yet to make public so much as a single document showing that the franchisees were not allowed to do consignment. And the previous owners shared their franchisee agreement which explicitly authorized them to do consignment.
Um yes so that happened, though a guess is since an archive of the going ons got into the public 3rd June, [1], the company could guess they run the possibility of landing in proverbial hot water ... time to cut losses.
[1] https://archive.org/details/american-fork-bodycam-unredacted
Edited for clarity.