The money never came through, Tadros said, because negotiations between the two sides deteriorated, rendering Bow Truss unable to make several payments, including payroll, insurance and other expenses. Tadros said he's scrambling to move more money into Bow Truss' bank accounts this week to cover such payments.

Tadros said Lemonis' team last week gave him “a final-hour ultimatum that was so far away from the (letter of intent) that it was unreasonable for me to decide” on behalf of all Bow Truss investors “at the very last second.” Without agreeing to new, less favorable terms on Lemonis' proposed purchase, Tadros said, Bow Truss would not receive the loan.

“I don't know what happened,” Tadros said. Bow Truss' outstanding debts and payables “never changed, more or less; we've been very transparent about everything, and if I did anything wrong, I'm sorry. That's not the intent.”

Tadros said he hopes Lemonis will honor the deal the two sides already negotiated, or at least come back with an offer “that's reasonable.”

Lemonis, meanwhile, questioned Tadros' integrity and said he's frustrated with what his team found during the due diligence process.

Among his findings:

• Bow Truss is late on rent payments to landlords at all of its locations, in some cases “by several months.” He also said the company has never paid rent to the city of Chicago for its Mariano Park shop and owes about $64,000. Tadros acknowledged in an email that Bow Truss is behind on such payments. “We are late—that's why we need his help,” he said. Regarding the money owed the city, Tadros said the Chicago Park District “is aware. We are on the same page regarding that it's a private business matter.” A district spokeswoman confirmed Bow Truss is late on its rent and now owes roughly $64,000.

• Paychecks that Bow Truss issued to employees last week bounced, and some employees have been told by health care providers that their health insurance is not current, though Bow Truss had been withholding premium contributions from employees' paychecks. Tadros confirmed that some employees' paychecks bounced and said Bow Truss has missed two months' worth of health insurance payments. Bow Truss' primary health coverage, however, remains active for employees, according to a note Tadros forwarded from his insurance agent. He said he plans to make a payment tomorrow.

Another Bow Truss insurance provider, Guardian, covers dental, vision and mental health care. Though employees have been paying premiums for that insurance out of their paychecks, Bow Truss has not paid its share for several months, leaving employees without coverage for those services. Tadros said “offering it was a mistake because we can't afford it. We tried.” He said he plans to make payments to employees and the insurance company this week.

• Funds allocated for ongoing new-store construction projects are not being spent on those buildouts. Instead, they have been moved into the company to meet expenses like payroll. Tadros confirmed construction money was spent to meet other expenses: “If money comes in for construction but you need to make payroll, you make payroll. That is the right thing to do.”