Powys council's cabinet will consider the recommendation to keep Carno open on 14 May.
BBC: Ysgol Carno: School might be spared under new plans
But in the 1990s the firm's fortunes faded, and in 2004 its former headquarters in Carno closed.
BBC: Funeral for Laura Ashley founder
Ysgol Carno SOS unveiled radical plans last month to build its own school by extending the community centre.
The funeral was held in Carno, near Newtown, where the family built their first factory in the 1960s.
Derrick Pugh, a former manager of Laura Ashley in Carno, said it was a sad but very humorous service.
The council recommends that children are transferred from Carno to Llanbrynmair primary school, which is about seven miles (11km) away.
BBC: Powys schools: Carno and Llandinam primaries set to close
From humble beginnings at the Old Railway House in the little known village of Carno, Laura Ashley grew to have 5, 000 retail outlets worldwide.
It is the latest round of job cuts in the area, after Laura Ashley announced 90 posts were going in its factories in Newtown and Carno last month.
BBC: NEWS | UK | Wales | Mid | Phone mast firm job cuts meeting
But Save Ysgol Carno Action Group disputed Ms Alexander's figures.
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