...and very bad, but I suspect you have done all you can.
I think if they'd handled it very differently, you'd be telling us all how well they'd recovered from this bad situation, but as it is you are telling us, and probably friends/colleagues not to use them which in theory will also hurt them. Very short-sighted on their part.
I presume you've at least got your money back / a replacement now. I'd put it down to experience and avoid them in future and perhaps check back in with the council in a few weeks to see if they've done anything.