damoshe, chillngrill, zd: I have no reason to doubt what you have written. If that is the case, the OK’s original letter that just says we are removing the hashgachah is (IMHO) reasonable.
There is a famous story of a grocery store in Cleveland (i think it was in the 1960’s or 1970’s) that word went out about work being done on the air conditioner system on Shabbos and people shouldn’t buy there. The owners went to Rav Gifter Tzatzal who contacted the repairman and asked about the repair work. The repairman told Rav Gifter that all the work was done on the roof and since the store was closed on Saturday he wouldn’t be inconveniencing any customers and would be the best day to do the repairs. For the next week Rav Gifter went everyday to purchase something from this store.