Workers at the Remploy factory in Norwich, many of whom are disabled, have been placed under the threat of redundancy after the company failed to find a suitable bidder for the business.
Around the country about 234 disabled workers are at risk of redundancy as nine Remploy factories, including Norwich, face closure.
Minister for the disabled, Esther McVey, said jobs for about 70% of the 515 disabled employees in the remaining Remploy factories and CCTV sites could be saved after they attracted bids to take over the businesses.
Workers at the Norwich Remploy factory have joined thousands across the county on strike at plans to close their factories. Although the Norwich unit is not under threat, 36 of the 54 Remploy factories around Britain face closure and the Unite union is campaigning to keep them open.
The factories employ a large proportion of disabled staff. Ministers have argued that the factories are loss-making, and money would be better spent helping individuals find jobs elsewhere.