A rent-based retailer once considered an "innovative business model" for the space it offered local artisans is now coming under fire for allegedly failing to pay vendors, among other things.

The Nooks, launched in Toronto before expanding to more than a dozen locations in Ontario and B.C., has been inundated with negative Google reviews and angry Instagram comments in recent weeks, with vendors alleging unresolved payment issues and a lack of response from owner Colleen Imrie.

The public lambasting was enough for Imrie to post a statement to the brand's website and social media this week, citing "false and defamatory allegations" about herself and the chain, which carried products from small makers in high profile spots like the Bay, Yorkdale Mall and on Toronto's Queen Street West for a rental fee.

She attributed all of The Nooks' recent issues on a former business partner, claiming that "without my knowledge, numerous actions had been undertaken to undermine the financial viability of The Nooks... the proprietary inventory software, vendor membership fees and point-of-sale systems were compromised."

"To this day, I have been working tirelessly behind-the-scenes to do everything I can to repair the damage that occurred," Imrie continued. "I have hired the best experts, and have forfeited my own salary, to ensure our vendors have been adequately compensated."

But, vendors seem to have another story, with many writing simply "pay your vendors" in Google reviews dated as recently as February 22.

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The latest review claims that Imrie has long been involved in "some pretty unsavoury business practices," including "lost product, lack of payments and a host of other issues."

Vendors and former staff have also aired their grievances in a Facebook group, with many claiming mis-management of funds, poor HR practices and poor treatment generally. The private group is now up to 735 members as of Friday afternoon.

Some artisans allege that they've had to pay to get their own product back, have been unable to get it back, and/or have not been able to contact Imrie amid the controversy, along with not getting paid properly.

One person posted a sign in the window of The Nooks' Bowmanville location, where the landlord is claiming Imrie breached multiple terms of her lease agreement — all of this while The Nooks is slated to open a new location at Bramalea City Centre on March 1, per its Instagram bio.

In response to the formal apology and update, some are vowing to never support the brand again, while others are expressing sympathy for Imrie and management for what they are going through.

"As a business owner, you should have perfected your business model since day one, instead of opening up several more shops and not overseeing what has been going on," one well-liked comment reads.

blogTO reached out to The Nooks for comment on the matter, but did not receive a response in time for publication.