Weren't they still operating in some form at Harold Moore's Records, Gt Marlborough St? (the place with no notice on the door, hazardous door-knob and secret password to get in). They were here the last time I visited, in the upstairs bit - after the closure they moved downstairs into the main store I think (haven't visited).
Well, I guess it is a major recession and Ed Dipple originally started by mail order 1974/75 so the timing is right ! In fact, Mole at their peak was in the early 80s recession.
Haven't heard anything of this rumour, by the way. Great Marlborough St is on the edge of Soho, so that could be the source of the rumour.
(Mole's original site at Kings Cross pre-redevelopment (if it ever happens)