Ryland Group, Calabasas, Calif. (NYSE:RYL) on Friday announced it is winding down operations in the Dallas and Jacksonville markets.
In a brief statement, the company said it "intends to complete all the homes currently under contract with customers and market its remaining available land in these divisions as part of a strategic plan to efficiently manage its invested capital."
Between 40 and 50 Ryland employees are expected to be laid off as a result, according to a company spokesman.
According to the Ryland web site, the company currenlty has nine active communities in Dallas and five active communities in Jacksonville.
Ryland said it will service all outstanding warranties on the homes it constructs in Dallas and Jacksonville and customers could still call and e-mail their Ryland customer service contacts and request service by visiting the "Warranty" page on the company's Web site.
Drew Mackintosh, vp of investor relations, said the company had 1,353 lots in Dallas and 776 in Jacksonville at the close of the second quarter. Those lots, however, included specs, models and homes in backlog. A number also were optioned lots, which he said the company would "most likley walk away from."
Mackintosh said it was not currently possible to provide an accurate count of owned lots in the affected markets that would be put up for sale.
Learn more about markets featured in this article: Dallas, TX.
