I think it's going to be less of a lawsuit and more of a boxer match.

neither, the business was sold, though I don't know why they didnt just sell off the merchandise as is, rather than going to the effort of relabeling it all.

Because they want there brand to be more recognized, or the other brand is not very well recognized and they needed to move merch.

I figured as much, but it just didn't seem worth the effort and the cost to rebrand merchandise. Unless of course they had some way of making it cost effective. Probably cheap foreign labor