In brief
A Times investigation uncovers that Therme, a European company, misrepresented its track record in securing a deal with the Ontario government, leading to public outrage over its unfair contracting process and shaky finances.
A lesser-known European wellness company, Therme, is causing a stir in Canada’s largest city due to its inflated claims regarding its experience and financial stability. The firm, which currently operates a spa and water park in Romania, aims to develop similar facilities worldwide. Its recent 95-year lease agreement with the Ontario government has raised eyebrows, particularly since it includes a commitment from the government to shoulder substantial upfront costs that could reach hundreds of millions.Last year's audit confirmed that the bidding process was marred by a lack of transparency and fairness, aligning with Therme's push for an ambitious expansion plan targeting major North American, European, and Middle Eastern cities. A New York Times investigation revealed that Therme presented itself misleadingly to both stakeholders and the Ontario government, suggesting it managed multiple spa facilities across Europe. However, the report unearthed that the firm actually owned and ran just one location near Bucharest, Romania.As Therme set its sights on Toronto, its financial health appeared alarmingly weak. Auditors noted that the company was operating at a loss, with reported equity of less than 1 million euros (approximately $1.1 million). This discrepancy signals potential vulnerabilities as Therme continues its global ambitions while facing mounting criticism over its integrity and operational claims.
