Global Counsel Enters Administration Following Mandelson-Epstein Scandal
Global Counsel, the advisory firm co-founded by former Labour minister Peter Mandelson, has officially called in administrators, attributing its collapse to the intense reputational damage stemming from Mandelson's association with convicted sex offender Jeffrey Epstein. The firm, which employs approximately 100 staff across offices in London, Berlin, Brussels, Doha, and Singapore, confirmed the move in a statement posted on LinkedIn, revealing that it has requested a court to appoint Interpath as administrator to manage and liquidate its assets.
Client Exodus and Failed Damage Control Efforts
Despite concerted efforts to sever ties with its founders, Global Counsel has suffered a significant loss of clients, including high-profile names such as Barclays Bank, Tesco, and the Premier League. Other departures include fintech company Klarna, Phoenix Group, private equity group KKR, and telecoms giant Vodafone, which placed its contract under review. Pharmaceutical firm GSK also stated it has no plans to engage with the company in the future.
The crisis deepened after revelations that Mandelson sought Epstein's advice on establishing the business in 2010, shortly after leaving office following Labour's general election defeat. Additionally, court files disclosed that co-founder Benjamin Wegg-Prosser met Epstein while the latter was under house arrest in New York, sharing the company's business plan during the encounter.
Internal Fallout and Redundancies
In its statement, Global Counsel acknowledged that the "maelstrom of political and media attention surrounding Peter Mandelson" has made it untenable to continue operations. The firm emphasized that while it no longer has any connection with Mandelson, his role as a co-founder and early conduct have permanently tainted its public perception. Administrators have indicated that any ongoing client servicing will be limited, leading to a substantial number of redundancies once they assume control.
The board praised staff for their resilience in the face of uncontrollable circumstances and expressed gratitude to clients, noting that shareholders have incurred material losses through no fault of their own. Wegg-Prosser stepped down as CEO earlier this month amid the fallout from the latest Epstein file releases by the U.S. Department of Justice, and Mandelson has since sold his shares in the business.
Historical Context and Denials
Sources close to Wegg-Prosser have previously asserted that he met Epstein only once, 16 years ago, for a brief 25-minute meeting at Mandelson's suggestion, describing it as inconsequential and never repeated. The Financial Times reported that staff were informed the "Peter Mandelson legacy" had effectively capsized the business, highlighting the enduring impact of the scandal on the firm's viability.
