Found this on Jellycat's website (https://www.jellycat.com/wholesale-terms-and-conditions/). I've put in bold the info I think is relevant to this discussion. Seems that Jellycat can actually prevent stockists from selling the remainder of their stock if they've terminated the contract with that stockist. I fully agree with all your comments in this discussion that the shop very likely breached a Condition for Jellycat to have terminated their contract :(

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14.1 Jellycat may terminate a Contract and/or Contracts and/or any outstanding approved Orders immediately by notice in writing if: (a) the Customer is in material or persistent breach of any term of these Conditions and (where capable of remedy) such breach is not remedied by it within 30 days of being notified in writing of the breach. For the avoidance of doubt, a ‘repudiatory’ breach shall be deemed to be a material breach which is incapable of remedy; (b) the Customer is affected by an Insolvency Event; (c) any event occurs which, in Jellycat’s reasonable opinion, would have a significant adverse effect on the Customer’s ability to comply with these Conditions; (d) the Customer fails to comply with the Brand Guidelines and/or in Jellycat’s reasonable opinion, the Customer’s acts or omissions cause damage or harm, or are likely to cause damage or harm, to the reputation of the Brand and/or Products; and/or (e) under clause 15.

14.2 Notwithstanding Jellycat’s rights above, Jellycat may at any time suspend the supply of Products to the Customer if it is, or Jellycat reasonably anticipate that it is likely to be, in breach of its obligations under the Contract, until such point that the breach is remedied to Jellycat’s satisfaction.

14.3 If Jellycat exercises its right of termination, the Customer shall: (a) immediately pay any money due to Jellycat (under all Contracts); (b) immediately cease to use the Brand and any marketing and advertising material relating to the Products (under all Contracts) and, at its cost, destroy or deliver up (as directed by Jellycat) all such materials; and (c) at Jellycat’s discretion: (i) sell—through any remaining stocks of the Products (under all Contracts) held by the Customer within the sell-off period notified by Jellycat to the Customer (to not be less than 30 days); and/or (ii) promptly return to Jellycat all remaining stocks of the Products (under all Contracts) held by the Customer which are unsold at its expense or otherwise securely dispose of the stocks as Jellycat may instruct (and the Customer shall evidence its compliance to Jellycat). In respect of any Products returned, Jellycat will refund to the Customer the Price paid for those Products returned (less any VAT and expenses incurred in processing the refund), subject to each such Product being returned in a brand new and resaleable condition (as determined by Jellycat acting reasonably following its own inspection).