How did it all go wrong?

JONES the Grocer (JTG) was founded by Lindsay Jones in 1996 as a food emporium in Sydney's eastern suburbs, and sold to former engineer-turned-food supplier John Manos in 2005.

By 2012, Mr Manos had turned it into a A$33 million (S$34.2 million) business with 18 stores across territories such as Singapore, New Zealand and the UAE. After an introduction through "a mutual colleague", Mr Manos sold a 50 per cent stake to L Capital Asia in July that year, with further ambitions to "grow fivefold within five years" in markets such as Kuwait, Saudi Arabia, Thailand, China and Japan.

Later in 2012, Jones acquired parts of a troubled Sydney restaurant group run by celebrity chef Justin North, and resuscitated its Becasse Bakery and Charlie & Co gourmet burger shops in Australia, along with offshoots in Singapore in 2013.

But success waned more quickly than it waxed. "In the last two years, we haven't grown that network at all. In some cases, such as in Singapore, we have had to reduce our footprint," Mr Manos told BT in a phone interview. "The growth targets were always ambitious, but they were achievable under the right structure."

"There is a lot of interest in the brand internationally, and we were on track to hit those targets", until differing views between shareholders affected the strategic approach of the group, he said. Mr Manos is now suing L Capital in Melbourne's high court, alleging its decision to appoint administrators to manage its Australia-registered parent company was "oppressive conduct".

"Private equity companies often have a different strategic involvement, a short-term view of the business," said Mr Manos. "There are certain ways that an F&B business needs to be run. When private equity companies don't have such knowledge, it takes time to get them to understand."

Looking back, Mr Manos said, he would not have relinquished majority control of his company. From a 50-50 division of shares when L Capital came on board in July 2012, his equity was reduced to around 42 per cent in July 2013 and to its current 37 per cent in December 2013, he recalled. "In a partnership where there is a founder-individual versus a multibillion-dollar company, even at 50-50, the real control rests with the larger party," he said.

As to whether he will stay in the food and retail industry, Mr Manos said that he was "focused on resolving the issues, and will look to what's next when that is done". "Given our track record, I believe there will be many opportunities," he added.

Two JTG franchise stores in Thailand and Bahrain signed under his tenure are on track to open next month, but the highly anticipated 11,000 square foot New York store in Westfield's World Trade Center development will no longer be opening this year.

Australian media had earlier reported that Mr Manos was expected to open a new retail concept in the same space, but he told BT that these are "still unconfirmed".

READ MORE: Jones the Grocer's Singapore stores up for sale