It all depends upon how well you know the store, the employees and the owner. If they have been reputable in the past then I would give them the benefit of the doubt and believe that he was repairing cigars for someone. Otherwise, I would take my business elsewhere -- but I would tell them why I was doing so.
If you remember the bands of any of the repaired cigars you could go looking for them the next day...
As for the mold, many B&Ms and online retailers have issues with mold. While I don't like buying sticks with mold on them, and will avoid it when I can, mold is pretty easy (if time consuming) to clean up.
Part whether or not you go back also depends upon if you have anywhere else to go... I am lucky in that we have a lot of B&M's in the area.
Just my