Sounds like they bought a business they didn't understand, then didn't educate themselves about how to run it. Then they ended up giving up on it, closing down almost entirely, and now they just want to cut out. The regulations are pretty clear, and they accepted those regulations when they took on the business. They've chosen to apply for and agree to those regulations, and now complain that they have not met those requirements.

I have no sympathy for their poor choices. Revoke the license I say.