A COMPANY owned by the chairman of the regional Federation of Small Businesses has failed, owing the taxman tens of thousands of pounds, the Daily Echo can reveal.

Hampshire recruitment and training firm KJM Solutions ran into cash flow problems and went into voluntary liquidation earlier this year after a major customer pulled out.

Owner Ken Moon says the experience actually makes him more qualified to fulfil his role as chairman of the Wessex region of the business pressure group.

Mr Moon, who has twice stood for election as a Conservative councillor in his home in Clanfield, said he was still waiting to hear the full scale of the business's debts.

He has since started another training company called Ken Moon Associates.

Mr Moon, 57, said: "Following the loss of a major client and after taking professional advice from financial advisors, the unanimous decision of the board was to place KJM Solutions into voluntary liquidation.

"This experience has made me personally very conscious of the difficulties faced by many small businesses and has given me a deeper appreciation of the support they sometimes need and indeed the FSB is often able to give them.

"The FSB is fully aware of the situation and I don't believe there is any question over my integrity and ability to serve. I think it actually improves my understanding."

James Tickell, director of Whiteley-based business services firm Portland, said: "The company essentially ceased trading because it had large debts, mainly to the Crown, that it couldn't settle.

"The directors decided to put it into liquidation because they decided it was not viable. There was nothing untoward about it."

An FSB spokesman said: "From a national perspective there are half a million new businesses started every year and within three years 300,000 will have gone bust. It is a sad fact of business life but it happens and the important thing is to learn from it.

"Mr Moon was elected by FSB members and we have full confidence in the election process and Mr Moon's ability to represent the FSB and its local members."