Sorry but this does not sound like Mac. Best thing to do is stop the bull shit on here and go see the man yourself with your concerns and you might find the out come isn't that bad.
I would assume he signed an agreement with the shop for them to sell it on behalf, the bike should have been covered by the shops Insurance while in there , it was not being stored there, but was for sale so their out clause will not apply. Make a claim in the small claims court against the shop and their insurance providers send a letter to the shop and insurance company stating what you intend to proceed with civil action unless the matter is resolved forth with.
Sounds like something that should be taken to the small claims court. Its about $50 to file explain the story provide pictures of the bike before and after with any other communications you have from the store and chances are you will win the price of repair back.