I dont understand how that works: The entire $400M business decided to close over $200K judgment? Or just the single store? If just the store, why did they sue the store and not the underlying business?

In my (possibly flawed) understanding, it's a franchise so they were able to dissolve the LLC that owned this particular store. The franchise is what has physical possession of the lego and signed the consignment contract.

Just the single store closed .