The consultancy Global Counsel, co-founded by former Labour minister Peter Mandelson, has collapsed into administration after a number of clients severed ties over his relationship with convicted child sex offender Jeffrey Epstein.
The London-based firm, which employed around 100 people across the UK and had offices in Berlin, Brussels, Doha and Singapore, stopped trading on Friday. Administrators from Interpath said the company had “no option” but to enter administration following a rapid loss of clients.
The crisis erupted after it emerged that Mandelson had sought Epstein’s advice on setting up the business in 2010, shortly after leaving office. Files released by the US Department of Justice also revealed that co-founder Benjamin Wegg-Prosser had met Epstein and shared the company’s business plan while Epstein was under house arrest in New York.
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 administrators would review assets and liabilities and support UK staff.
Wegg-Prosser stepped down as chief executive earlier this month. Global Counsel’s attempts to distance itself from Mandelson and Wegg-Prosser proved unsuccessful in stemming client departures.
