They may have thought it was confusingly similar to the pattern they use for their brands (e.g. Trader Jose's, Baker Josef's).

Update: I went and read the actual complaint by Trader Joe's and, though it does mention this, I think this comment may be overly generous to their thought process.

The complaint[1], as far as I can tell, was basically that their decor looked kinda like Trader Joe's and they sold Trader Joe's products and this combination is deceptive.

[1]: https://static1.squarespace.com/static/51fc7d3ce4b05ae014fc8...