The future for timberland pro Renova is still uncertain.
A year ago, the company’s chief executive, Richard Gorman, said the company was on track to break even by the end of the year, but he’s now downplaying the figure.
“It’s not going to happen,” Gorman said, referring to the business.
“We have to get back to profitability.”
The company has a contract to open more than 30 new buildings, which will generate $2 billion in annual sales.
But the new buildings aren’t expected to open until 2020.
The company is also considering closing its existing properties, which it already has completed, in order to focus on building new ones.
The new buildings will be built on the former lumberyard that was once a logging camp in the region.
The ranch has been under renovation for about three years.
“The goal was to build a business that was going to be in the timber business,” Gomer said.
“To me, it’s the same way that I started out.”
Gomer’s comments came after a year-long audit that found the company didn’t follow accounting rules, violated federal environmental laws, and didn’t adequately plan for climate change.
A report released by the Interior Department last month also found the ranch was on the wrong track in the face of climate change and the changing climate.
The report found the business has “a high likelihood of failure in the event of a changing climate,” as well as in its ability to provide a sustainable and economically viable ranching operation.
But Gomer is optimistic that the company can turn around its business and return to profitability.
“This is a new opportunity,” he said.
The current situation is not sustainable, he said, adding that he believes the company has “the tools, the financial resources, the management skills, and the management environment to move forward.”
Still, he cautioned that he isn’t optimistic about the future of timberland.
“When you have a long-term problem, you have to be prepared for that,” he told ABC News.
“And you have no doubt that the situation is a problem.”
Gorman noted that the ranch will be closed from October 2018 to March 2019.
He said that his company has been in a state of limbo for a year, and it has been taking “a lot of time to look at all the different options.”
Gormer said the new timberlands would likely be built in the future in the area surrounding the existing lumberyards.
“So it’s a very big deal for the environment, for the people who live in the woodlands,” he added.
“But it’s also very, very big for the ranch.
It will be a new, vibrant, beautiful place to live.”