The firm which manufactures road signs for Northamptonshire County Council is to be sold to ensure its long-term future, the council has recommended.
Nordis Signs, which offers employment to people with disabilities, has struggled to break even for many years.
It could be bought by May Gurney under plans to be discussed by the cabinet on 9 November.
The sale would improve Nordis' access to a wider network of contracts, the council said.
Andrew Langley, county council cabinet member for commercial and asset management, said the sale would "make a great deal of sense as it brings benefits to all concerned".
"In today's current financial climate it would have made it difficult for us to continue supporting Nordis financially."
Nordis Signs in Northampton currently employs 14 disabled staff, who make up the majority of its workforce.
It has required the county council to underwrite its losses for several years, the council added.