They don’t want customers buying Lego stuff just for the enjoyment it provides, but because they are a “Lego person” and it’s part of their identity. Makes for stronger brand loyalty and promotes brand advocacy.
So they totally knew about it and called it Hollister anyway. That's funny right there!
As for Hollister, CA, Wikipedia says:
Trademark conflict with Hollister, California
According to an article in the Los Angeles Times in April 2009, Abercrombie & Fitch has threatened merchants and residents of Hollister, California who want to use the name "Hollister" on clothing. The article quotes David Cupps, general counsel for Abercrombie & Fitch: "If they try, they would get a call and much more."[32]
Also, according to the article: "The controversy over the name heated up in 2006 when Stacey Crummett, chief executive of Hollister-based Rag City Blues, added the word "Hollister" to the label of her vintage bluejeans. In response to her trademark registration application, Abercrombie & Fitch attorneys sent her a letter alleging she was violating the company's trademark and threatening to sue." Crummett subsequently withdrew the application.[33]
"Even students at Hollister's San Benito High School wonder if they are violating Abercrombie & Fitch's trademark by wearing shirts emblazed with the school nickname, the Hollister Haybalers."
"Hollister City Atty. Stephanie Atigh insists that Abercrombie & Fitch cannot sue if locals are simply putting the town name on clothes to identify the geographic location."[32]