(FORTUNE Small Business) – For the small Vermont town of Bennington, the news came as a shock: Terry Ehrich, owner of Hemmings Motor News, had been diagnosed with lung cancer and had put his company up for sale. "Not just for Bennington but for all of Vermont, Hemmings is one of the icons," says Lance Matteson, executive director of the Bennington County Industrial Corp.

Hemmings, publisher of a 700-page auto parts magazine, was the prototypical benevolent small-town employer. Its 120 well-paid employees received unusual benefits, like days off to attend school with their children and free apples from the Hemmings orchard. The company generated publicity and provided attractions for the local antique auto show, which draws 8,000 visitors every year. And its 1950s-era filling station attracted thousands of enthusiasts.

Ehrich, 60, died in January, and Hemmings was sold May 1 to American City Business Journals of Charlotte, N.C., part of Advance Publications. American City paid an estimated $35 million for the magazine and some smaller publications, as well as four old delivery trucks from the car collection. But local leaders worried about the town's ability to handle the change. "We had just lost a Stanley Tool plant," says Michael Williams, former director of Bennington's Chamber of Commerce.

Like the squabble over Hershey--the board of trustees ran into objections from its hometown this year when it tried to sell the company--the anxiety over Hemmings shows the bind that small businesses can face when it comes time to sell. A prosperous enterprise plays a vital role in its community, but when ownership changes, what becomes of the town that nurtured the business?

Early details about the deal didn't fill Bennington with confidence: American City didn't buy the filling station or the apple orchard. And Ehrich's heirs didn't insist that the new owners keep Hemmings in Bennington. "You can't sell a guy a car and then insist he change the oil," says Perez Ehrich, Hemmings's former chief operating officer and Terry's younger brother.

Furthermore, Hemmings's new owners didn't mince words about the need for change. American City is counting on 10% annual revenue growth. Says new president and publisher Jim Menneto: "This company was run as a hobby, and we didn't come in here to run it the way it was."

That's already apparent. The new owners have started to trim the payroll, leading to worried talk around town. (The company says it will refill the positions soon.) But Menneto has also pledged to leave Hemmings where it is. "We want to be respectful to the brand, and we're committed to keeping Hemmings in Bennington," he says. To back up his promise, he arranged for Hemmings to play a major role again in this year's car show, and he is negotiating to buy the filling station. If he keeps his word, Bennington may be able to pull itself out of the crash position.