I dont know how the story broke, My personal guess is someone saw the policy and thought it was anti-semetic not knowing the company was frum and it went viral. It was a bit unusual policy and eventually it was picked up by the mainstream media.
Meanwhile people were debating and orignally condeming this company until they realized it was a frum company.
We have debated things that arent exactly against halacha, and might not even be against the law, but dont pass the smell test. This policy is probsbly the result of such things.
People were probably buying their clothes for a simcha and then returning the clothes after the simcha, thinking it was OK