It was supposed to be an inspiring story: community members rally, raise money and reopen a shuttered grocery store that had anchored a commercial strip in Clifton's Gaslight District.

Community activists did what they said they would. They raised $6 million, bought the former Keller's IGA store, got city tax breaks, renovated the store and opened the doors for business in January.

But the launch of the upscale, cooperative supermarket has been a rough ride: it's drawn only half the $256,000 weekly projected revenues; it's lost $1.4 million as of the latest quarter; and is severely under-capitalized with a mere $4,000 in cash on hand as of June 30.

Making matters worse, clashing egos, visions and dysfunction have led to an outright civil war on the operation's 9-member board of directors. The governing panel is currently in disagreement over whether a critical Aug. 26 meeting of shareholders held a binding vote changing bylaws. Each side has attorneys saying they are right.

Some board members might be removed and a legal battle is a possibility.

Gary Crawford, the president of the board since July, is also the senior vice president of sales and development at Laurel Grocery Co., a London, Kentucky food distributor. That company is also Clifton Market's third-largest – but unsecured – creditor.

If his business, which is owed $500,000, pulls the plug, the doors would close in a week, he said. But Laurel doesn't want to do that since it likely wouldn't recoup its money.

"The only way we get paid is if the co-op survives and becomes a viable part of Clifton – and we believe it can," Crawford said. "There's an opportunity to make it, to turn the corner if we stay the course. But we don't have an endless supply of money."

The fate of Clifton Market has repercussions beyond one storefront on Ludlow. What started out as a feel-good community story has turned out to be a hard lesson in business, politics and the damage of infighting.

Shoppers give new store a try after a 6-year absence

Customers at Clifton Market give the fledgling store high marks for its fresh produce and its product selection. The mix of shoppers on a recent store visit included customers who just discovered the store and ones that seem to be becoming regulars at 319 Ludlow Ave.

Patricia Kraemer, a 57-year-old Finneytown resident and co-owner of a nearby design firm, said she's started shopping at the store about once a week. She likes the convenience of the market a half block away from her office and has become a fan of their chicken salad.

"I work up the street and come here after work," Kraemer said. "The prices are a little high, but I like supporting a local business. It's just my husband and myself at home now and we don't eat as much food as before."

Not every shopper is bowled over.

Valerie Chronis Bickett, a 69-year-old self-employed writing teacher from Northside, recently stopped by after a nearby yoga class. She picked up a few produce items, but said the store should dump non-organic items to win more of her business.

"I heard that it's in trouble. A little bit of me wants to support them," Chronis Bickett said. "But I think they're trying to be all things to all people – I want to see them take a stand and go all organic."

Keith Brock, the store's manager, admits the store had a bumpy start. Sales have edged upwards toward $130,000 per week, which he said are "tight" but he could make work. He'd be more confident, if weekly sales climbed toward $160,000.

Besides initial sales falling short, the threadbare cash on hand means popular items aren't promptly reordered, costing it sales. He noted a hole in the pickle aisle.

There were some early pricing issues where the store was briefly trying to sell heads of cauliflower for $6.99, prompting indignation.

Then there's the inevitable re-calibration that any store goes through once the doors open when receipts say what sells and what doesn't. Don't get him started on the pickled okra, which the store sold only one jar of in six months.

But Brock said there are encouraging signs too: demand for fresh produce and locally-made products have surpassed expectations. That's critical because that can help the store realize a sustainable niche in the shadow of local juggernaut Kroger, which has a newly-revamped store a mile and half away.

Brock said the co-op needs to move from the community project of several enthusiastic supporters to the pace of business. He declined to discuss the infighting that has taken place among the co-op's board, saying he's focusing on day-to-day operations and hoping for the best. He believes the store can ramp up sales as former Keller's customers rediscover Clifton Market.

"Shopping patterns have changed. This store was closed for six years," Brock said. "To try to get that back is a slow process."

Hey, let's open a store. What's the worst that could happen?

Local activists started with so much moxie.

Keller's IGA was a pretty economical, bare bones operation that closed its doors in January 2011 after it fell behind on its taxes. After another IGA owner bought the property and unsuccessfully attempted to reopen it, community members began to raise money in early 2014 to acquire and renovate the space.

Current board member Marilyn Hyland, a marketing agency owner who also was instrumental in saving Clifton's Esquire Theatre in the 1980s, served as the group's frequent spokeswoman. He son, Adam, who founded his own digital advertising firm, was also part of the effort and until June was the board's president.

The store's advocates envisioned a more upscale destination than they were replacing, a supermarket that would offer organic produce, a full-service meat and seafood section, a bakery, deli, as well as staples, such as baby food, cleaning products and pet supplies.

The group secured loans and sold shares at $200 apiece to community members. They purchased the property for $878,000 in 2015 and spent more than $1 million renovating it.

The biggest setback the group encountered were two attempts in 2015 to get funding from the city of Cincinnati. While the city approved 12-year tax abatement, the administration nixed a request to borrow $550,000 for the store. Then Mayor John Cranley vetoed a City Council-approved $400,000 grant.

The stumbling blocks? Consultants hired by the city to review the request, expressed misgivings about the project's success prospects so close to nearby competitors, including Kroger. They were concerned the governing board had a mother and son serving on the same panel.

Outside experts were also worried about the resumes of the project's advocate, with the initial board that included multiple marketing professionals, a chemist, a document specialist, a psychiatry professor, but no one from the supermarket industry. Clifton Market's backers had a lack of "business experience depth," the National Development Council, national nonprofit organization that provides advice to communities, wrote to city leaders.

Hyland said the group didn't have an industry vet on the board, but maintained a ready stable of qualified consultants, including a Remke-Biggs grocery veteran and a former distribution executive with SpartanNash.

Crawford was asked to join the board by its president, Hyland's son, Adam, and says he reluctantly agreed to take over as president. He said Clifton Market officials overspent fixing up the store, spending precious cash they should have preserved for running it.

"I agreed to be president because it was clear it was going to hell in a hand basket," Crawford said. "They spent like a bunch of drunken sailors."

Crawford said the $80,000 the group spent on lighting for the store could have been done for $35,000. He said the store spent $2,700 a month on its web site when it should have spent $300.

Board members appreciate Crawford's help throughout the store's development as well as its latest struggles, Hyland said. Crawford has reworked the store's supply contracts and gotten prices competitive and he's helped the staff get training to become more knowledgeable.

Customer traffic has picked up in late summer and the store has trimmed expenses, halving Clifton Market's monthly operating loss to $54,000 since June, Crawford said.

But a plan Crawford floated this summer to sell the store and lease it back to free up cash for operations was a non-starter, Hyland said.

"We sold shares in this by promising the community would control this property," Hyland said. "We said this would be here for your grandchildren's grandchildren."

Both Crawford and Hyland agree the store needs to raise about $500,000 for operating capital, but disagree about how to generate it.

Hyland wants to solicit additional micro investments via $200 shares as well as shareholder loans, Crawford said keeping equity in the building makes no sense.

On the eve of an Aug. 26 shareholder meeting, Hyland blasted the plan for "radical changes." She called a co-op attorney the board has used, who cited the Ohio laws and said the meeting was improperly called and therefore not binding.

Laddie Lushin, the co-op attorney who has advised the board and helped draft its bylaws, confirmed that opinion.

"The meeting is a nullity," Lushin said. "The meeting was called by a person, not the board. It's a co-op, you don't have people with the authority of a CEO."

At the meeting Crawford only discussed the option of selling the store property. There was no vote on it – a step he says he would seek before signing any deal, he said. In the meantime, Crawford said he has investors coming in later this month to look at the store as he continues to explore a possible sale.

Crawford said any potential deal would be a long-term lease back deal in which Clifton Market would retain control of the property. It would take months to negotiate, so he wants to pursue it to have a viable option for raising capital if fundraising efforts fall short.

As to the legality of the Aug. 26 meeting, Crawford says he has lawyers who say there was nothing wrong with the notice given or how it was called.

That is important because while there was no vote on selling the store, there were two votes among the 170 shareholders in attendance about board composition.

One vote banned family members from serving together on the panel. If it takes effect either Hyland or her son, Adam, would be forced off.

Another vote was that the nominating process for a handful of board members tapped to join in spring was improper, which could mean another election to fill vacated seats, including Adam Hyland's and possibly Crawford's.

Board members will meet later this month and it is unclear who will remain on the panel.

Lushin, the co-op attorney, marveled at the magnitude of the "dysfunction" on the board.

"I've been doing this kind of work for 40 years and power struggles like this I could count on one hand," Lushin said. "I don't think if the co-op was doing well, it would have come to this."

Lushin added: "This co-op wouldn't be here today without Marilyn."

Crawford said if there's a lawsuit, Clifton Market may not be around to see the outcome.

"Groceries are not for rookies. We appreciate everybody's passion, but now it's time to operate the business," Crawford said. "Sometimes we're called to start things, but its up to others to take it to the next level."