“so the yeshiva objected to a sheitel store which displayed much less sleaze than this h&m ad did. if even that was objectionable, how much more so this ad was.”
Nobody vandalized the store. Perhaps the store closed due to people staying away because of the conflict between the storekeeper and those who objected to the pictures.
An issue seemed to be that the pictures were on the same block as the yeshiva. Also, according to what was reported on YWN, the storekeeper did not immediately agree to the demand to remove the picture. People do have a right not to patronize a store they are unhappy with. They do not have the right to vandalize.