RE: what would you do?
 

Sounds likethe owner hasn't any people skills,which is the first thing that's going to hurt his business.
Childish, as he didn't know enough to deal with his dilemma with you face to face.
Then the fact that he sells secondary strings(to yours so I hear:)) and this sounds like a receipt for failure.
Hopefullyhe can work his sh## outfor it would be a shame to loss another bow shop (in Nova Scotia they are few and far between)
If it were me in your shoes I don't think I could continue to hang out there no matter what he does.
good luck with that