BY Rosemary
The lobbying and advisory firm co-founded by former British diplomat Peter Mandelson collapsed into administration on Friday after a wave of client departures triggered by renewed scrutiny of his past ties to the late convicted sex offender Jeffrey Epstein.
Global Counsel announced it had ceased operations and that approximately 80 staff members based in the United Kingdom would be laid off. The firm employs around 130 people worldwide. The abrupt halt follows what administrators described as a “rapid and sudden loss of clients” in recent weeks, as controversy surrounding Mandelson intensified.
The business has appointed administrators from Interpath Advisory to assess its financial position, explore potential restructuring options and review its remaining assets. Administration is a formal insolvency process under U.K. law designed to protect a company from creditors while restructuring or liquidation options are considered.
Will Wright, U.K. chief executive of Interpath and joint administrator, said the firm had grown over 15 years into one of Britain’s leading public affairs consultancies but was unable to withstand the scale of client withdrawals following the latest revelations.
Global Counsel was founded in 2010 by Mandelson after the Labour Party lost power, positioning itself as a high-level strategic advisory firm operating at the intersection of politics, regulation and global markets. Mandelson, a veteran of multiple Labour governments and a former U.K. ambassador to the United States, resigned from the company’s board in 2024. Earlier this month, he sold his shareholding in an apparent effort to shield the business from fallout linked to his personal legal and political troubles.
The renewed controversy stems from documents released by the U.S. Justice Department related to Epstein, who died in a New York prison in 2019 while awaiting trial on federal sex trafficking charges. Among the materials were emails suggesting that Mandelson, while serving as a senior figure in a Labour government in 2009, passed along sensitive government information to Epstein, whom he reportedly described as a close friend.
The released files also included records of payments totaling $75,000 in 2003 and 2004 from Epstein to accounts linked to Mandelson or to his husband, Reinaldo Avila da Silva. Mandelson has publicly questioned the authenticity of the bank statements cited in the documents. In a letter resigning from the Labour Party, he said he had no recollection of receiving such funds and pledged to investigate the matter.
Following publication of the documents, U.K. police searched Mandelson’s London residence and another property associated with him. Authorities have confirmed that the investigation concerns potential misconduct in public office. Mandelson has not been accused of any sexual offenses.
The police inquiry has widened in scope. On Thursday, Andrew Mountbatten-Windsor was arrested on suspicion of misconduct in public office related to his previous role as a U.K. trade envoy. Officials have not disclosed further details regarding the specific allegations under review.
The political ramifications have been significant. Mandelson’s appointment to a prominent diplomatic role had previously drawn scrutiny, with critics questioning the judgment of Keir Starmer, who faced mounting pressure amid revelations about Mandelson’s continued association with Epstein after the financier’s 2008 conviction for sex offenses involving a minor.
In September, less than a year after Mandelson’s appointment, Starmer dismissed him following the release of an earlier tranche of emails that showed he had maintained contact with Epstein even after that conviction. The prime minister’s office has indicated that the government intends to publish documentation related to the vetting process, arguing that the records will demonstrate that Mandelson misled officials and that proper procedures were followed.
For Global Counsel, the commercial impact proved swift and severe. Clients in the corporate and financial sectors reportedly severed ties amid reputational concerns, undermining the consultancy’s revenue base. In industries reliant on political credibility and trusted access to policymakers, reputational damage can rapidly translate into financial distress.
The firm’s collapse marks a dramatic turn for a consultancy that had cultivated a reputation for high-level geopolitical analysis and strategic advice across Europe, North America and Asia. Its client roster included multinational corporations navigating regulatory change, trade policy and political risk.
Mandelson’s career has long been marked by both influence and controversy. A key architect of Labour’s “New Labour” project under former Prime Minister Tony Blair, he resigned twice from ministerial posts in the early 2000s amid separate ethics disputes before returning to government. His latest legal and political troubles have now coincided with the failure of the business he helped build.
As administrators evaluate the company’s future, employees face immediate uncertainty and creditors await clarity on potential recoveries. The episode underscores how reputational crises tied to public figures can cascade beyond politics, destabilizing private enterprises built on personal networks and political capital.
Original article
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