Someone Trademarked A Name We've Been Using For 25+ Years

Throwaway acct, hope I have the right flair

Location: California

We are a small bath and body business in California. We used to have several storefronts and now are mainly online and in local retailors.

We've recently been notified that someone in a "competing business", (drink additives, powders, etc), has trademarked the name of our best selling scent that we've been using for over 25 years.

They said that since we are a "competing business" and will cause "brand confusion" we either need to stop using the name or pay to license it from them.

The person who owns this business and reached out to us is a trademark attorney. They also happen to live in the same area where we were founded and had our longest running store.

It appears they started their business in 2023 (trademarked in 2024).

Obviously we've been using this name for a long time and have plenty to prove it, but money is tight. Are we looking at a legal battle or is there some other way we can go about this? We obviously dont want to stop using the name and trash thousands of dollars worth of labels.

Thank you

EDIT:

Thank you to everyone who took the time to read and reply. I had the same thought that this was someone looking for easy targets. We have a trademark on our brand, but to trademark every product with a silly/unique name we have we'd have hundreds... however this one in particular we probably should have.

I will share everything here with the owners (who I speak with daily) and go from there.

We have less than five employees and with the economy how it is we are already stretched tight, which im sure they assumed after we closed our last physical storefront in 2023.

To the user who asked for our product to support us, I greatly appreciate the thought. But that would require me to expose this other person's brand and id like to avoid that.