TLT holds extensive hearing into sale of body rub parlour
By John Q. Duffy
On Thursday, May 16, 2019, a hearing before the Toronto Licensing Tribunal was held into the sale of 2405490 Ontario Ltd. [Vendor], o/a Minx Spa, Elliott Maurice Stone, President Holder of Body Rub Parlour Owner/Operator’s Licence to 2623304 Ontario Inc., o/a Minx Spa. Christopher Kavchak.
After an extensive hearing, the sale was approved by the panel of Melana Laverty and Edgar
The seller was represented by paralegal Noel Gerry and the purchaser by lawyer James Renihan.
Municipal Licensing and Standards was concerned over the long history of Stone racking up bylaw charges for operating contrary to the law, as well as the familial relationship between the seller and purchaser. Kavchak has a common law relationship with Stone’s sister.
MLS feared Stone will be involved in the operation of the business. As well, Stone is presently living in an upstairs apartment in the same building that houses the business, although the apartment does have a separate entrance.
Stone is the building owner and will be leasing the business space to Kavchak.
MLS was further concerned that given the apparent profitability of the business, the recorded price for the sale is alleged to be unreasonably low.
After hearing all the evidence, the panel decided to allow the sale, but the business must remain closed pursuant to an existing TLT order until the sale goes through and all building renovations are complete, at or after August 12, 2019.
Stone must have no involvement with the business, other than his role as landlord of the premises.
As well, the new owner’s license will be on probation for two years.