Peter Mandelson's Consultancy Global Counsel Collapses into Administration
Global Counsel, the advisory firm co-founded by former Labour minister Peter Mandelson, has fallen into administration after a significant number of clients cut ties with the business. The collapse follows revelations about the company's historical connections to the convicted child sex offender Jeffrey Epstein, which triggered a rapid loss of clientele and forced the firm to halt trading.
Immediate Impact and Staff Redundancies
On Friday, Global Counsel announced it had stopped trading, resulting in the redundancy of its UK-based staff. The London-headquartered company employs approximately 100 people, with the majority located in the UK and additional employees in Berlin, Brussels, Doha, and Singapore. Administrators from Interpath have been appointed to manage the process, citing the sudden client withdrawals as the primary cause for the administration.
Will Wright, chief executive of Interpath and joint administrator, stated, "While Global Counsel had grown over the past 15 years to become one of the UK’s leading public affairs consultancies, the rapid and sudden loss of clients over recent weeks has had a monumental impact on the business." He added that the focus would now be on reviewing the company's assets and liabilities to determine the best course of action for asset realization, while also supporting affected staff.
Background and Epstein Links
Global Counsel was established in 2010 by Peter Mandelson and Benjamin Wegg-Prosser, shortly after Mandelson left office following Labour's general election defeat. The crisis escalated when it emerged that Mandelson had sought advice from Jeffrey Epstein during the firm's setup phase. Further complicating matters, files released by the US Department of Justice revealed that Wegg-Prosser had met with Epstein while he was under house arrest in New York and shared the company's business plan with him.
Despite efforts by Global Counsel to distance itself from its co-founders in response to the scandal, the damage to its reputation proved irreversible. Wegg-Prosser stepped down as chief executive earlier this month, but the client exodus continued, ultimately leading to the firm's collapse. Interpath noted that the company had "no option" but to enter administration due to the severed client relationships.
Broader Implications for the Industry
This incident highlights the severe consequences that associations with controversial figures can have on businesses in the public affairs and lobbying sectors. Global Counsel's downfall underscores the importance of ethical governance and transparency in consultancy firms, particularly those involved in political and corporate advisory roles. The administration process will now involve a detailed assessment of the firm's financial standing, with potential implications for the wider lobbying industry in the UK and internationally.
