The community formed a cooperative earlier this year to buy the store, after the owners decided it was time to step aside.

Residents raised more than $400,000 for the purchase and renovation works.

But Colbinabbin resident Matt McEvoy, who is director on the board of the cooperative, said while it had all been going smoothly, there had been some issues in recent months.

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"Negotiations broke down a couple of months ago," Mr McEvoy said. "There has been a lot of different reasons for that and we're trying to work things out.

"Now we're back at they might want to sell but we need to negotiate. We've gone in circles a few times."

The store's owners said they did not want to comment on the situation.

Mr McEvoy said the cooperative was still trying to find a way to make it work.

"I don't really bare any ill-will or malice from my part and the board because we only want the best thing for the community," he said.

"But we're still at the point where it would be a real shame if we couldn't make this work. We're giving it every opportunity for this to actually be successful."

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Mr McEvoy said if the cooperative could not purchase the general store, they would look to other places.

"It wouldn't be the traditional Colbo way to go elsewhere and start a new business," he said.

"But I'm not willing to walk away without giving people the opportunity to pursue an alternative direction so we still get that end goal.

"If we try everything and have to disband and give money back, so be it. But we're not prepared to do that before offering some other solution."

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