Three of the last remaining Remploy factories will close.
The company said no viable bids had been made for its furniture business, so it will close sites in Blackburn, Neath and Sheffield.
All 196 employees, including the 160 disabled workers, are at risk of compulsory redundancy, although they will be invited to consultation meetings over the next 30 days.
However Remploy did say that a potentially viable bid had been made for its automotive factories in Birmingham, Coventry and Derby.
Detailed negotiations will now be held to complete a transaction as soon as possible.
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