Molokai Ranch announced today it will shut down all operations at the end of the month and lay off its roughly 120 employees in a decision that will shutter the island's largest private employer and severely damage tourism on Moloka'i.

The company, an affiliate of Hong Kong-based GuocoLeisure Ltd., said the move was a result of its inability to win enough support of a controversial plan to develop 200 lots for luxury homes at La'au Point that would help finance other Molokai Ranch business investments on the Friendly Isle.

"Unacceptable delays caused by continued opposition to every aspect of the master plan means we are unable to fund continued normal company operations," said company CEO Peter Nicholas in a written statement. "We deeply regret to have taken this step as the main impact will be on our loyal employees."

Molokai Ranch and its parent company Molokai Properties Ltd. most recently faced intense opposition to its plan at a state Land Use Commission hearing in November over whether the company's environmental impact statement for the La'au project was thorough enough.

The company withdrew its environmental statement from consideration after a LUC commissioner raised a motion to reject the report. The company indicated it intended to refile the environmental report, but also had previously said if its La'au project was rejected that it would have to consider ceasing business.

Nicholas said company operations that will be closed include Molokai Lodge, Kaupoa Beach Village, the Kaluakoi Golf Course, cattle ranching, Maunaloa's gas station, the Maunaloa tri-plex movie theater and maintenance.

Molokai Ranch also said it will close access to its property indefinitely. The company owns about 64,000 acres of property covering about 35 percent of the Island.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.