Therme, a European wellness firm, faces backlash after a report exposed exaggerated claims about its experience and financial instability while securing a 95-year lease for a water park in Toronto, prompting concerns about government transparency in the bidding process.
Controversy Surrounds Therme: Misleading Claims and Government Scrutiny in Toronto
Controversy Surrounds Therme: Misleading Claims and Government Scrutiny in Toronto
An investigation reveals that the European wellness company Therme misrepresented its credentials while securing a lucrative deal in Ontario, raising questions about its motives and operations.
A little-known European company with grand ambitions is stirring public outrage in Toronto, Canada’s largest city. Therme, which operates a spa and water park in Romania, has laid elaborate plans to replicate such facilities globally. At the center of this controversy is a recently secured 95-year lease agreement allowing Therme to develop a water park and spa on West Island, a project backed by the Ontario government that involves upfront costs of hundreds of millions of dollars.
A recent investigation by the New York Times has revealed that, while advocating for itself as a serious contender for the Toronto project, Therme has significantly misrepresented its operational experience, misleading the Ontario government. The contract process has been criticized by auditors for being unfair and lacking transparency, coinciding with Therme's agenda for ambitious expansions into other major cities across North America, Europe, and the Middle East.
According to the findings, Therme falsely claimed to operate as many as half a dozen spas throughout Europe. In reality, the company has only established one such facility near Bucharest, Romania. Reports indicate that Therme is grappling with financial difficulties, with auditors noting significant losses and revealing that the company possesses less than 1 million euros (approximately $1.1 million) in equity.
The investigation draws upon corporate filings from multiple countries along with interviews from key individuals involved in the company's dealings and bid for the Toronto project. This troubling exposure of Therme raises critical questions about corporate accountability and the fairness of the bidding processes for public contracts.
