HONOLULU -- Molokai Ranch officials told employees on Monday that it will halt operations at the facility on April 5.

The ranch operates two hotels at Maunaloa and Molokai Properties Ltd. Molokai Ranch owns about 40 percent of the island.

The company will lay off more than 113 Molokai workers in the next 60 days, according to a statement by Molokai Ranch. The number includes 86 full-time employees and 27 part-time employees, the company told the state.

Chief Executive Officer Peter Nicholas informed employees in meetings on Molokai and Oahu on Monday, he said.

"We deeply regret to have taken this step as the main impact will be on our loyal employees," Nicholas said.

The company will shut down Molokai Lodge, Kaupoa Beach Village, Kaluakoi Golf Course, the Maunaloa gas station, Maunaloa Tri-Plex theatre, cattle operations and maintenance operations, the company said in its statement.

"From what I seen, everybody was... they were pretty upset," Molokai Ranch worker Lester Keanini said. "I just bought a house. How are we going to pay for that now?"

"Next week is the time they're going to shut down everything. So they didn't even give us two weeks," Molokai Ranch worker Eric Wong said.

Molokai Ranch said its only hope for survival was its development plan. The company wanted to create a 200-lot luxury subdivision on 500 acres of beachfront land at La'au.

Many Molokai residents applauded the closure and said they are elated they avoided more development.

"The people have prevailed. The people's voice has been heard. Vanda hanakahi said. "We have fought a hard fight to save La'au because that's a sacred place."

Some of the resident have mixed feelings about the closure.

"Yeah, it stopped the development, but the hardship on the people. So there's a good and a bad about it," Molokai resident Ronald Cabanting said.

The company sent a notice to the state Department of Labor, notifying officials about the closure and upcoming layoffs.

"The impact on the community will be quite serious. I'm concerned for the employees and families that are affected. This is devastating news and they will be the ones who will feel it the most. While I have great faith in the tenacity and resiliency of the people of Molokai, I am concerned about their economic future," Maui County Mayor Charmaine Tavares said in a written statement.