Refundable breakage deposit not refunded

The holiday flat which we booked the weekend of 4-6 December 2015 got broken into. The tv belonging to the establishment was stolen as well as some of our personal belongings. The owners are holding us responsible for the stolen tv and refuse to refund us the deposit. They are accusing us of stealing the tv. They have not once apologized for the fact that someone broke into what was supposed to be a secure and safe holiday flat. Their attitude toward us when the tv was reported stolen was very arrogant and abrupt. The theft was reported to the police and a case was opened. The police office even pointed out to management how flimsy the locks were but management was adamant that no one could have gotten into the flat if it was locked.