Mandelson's Lobbying Firm Enters Administration Following Epstein Link Fallout
Global Counsel, the prominent lobbying and public affairs consultancy co-founded by former Labour minister Peter Mandelson, has collapsed into administration after a rapid exodus of clients. This dramatic development follows the release of documents detailing Lord Mandelson's connections with the convicted paedophile financier Jeffrey Epstein.
Client Exodus Forces Administration
The London-based firm, which maintained offices in Berlin, Brussels, Doha, Singapore, and Washington DC, announced it had ceased trading and made UK staff redundant. Administrators from Interpath have been appointed to oversee the process. Global Counsel stated that a significant financial impact from numerous clients cutting ties left directors with no alternative but to bring in administrators.
Will Wright, UK chief executive of Interpath and joint administrator, commented: '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.'
Steve Absolom, managing director at Interpath and joint administrator, added: 'Our immediate focus is on supporting the talented and loyal UK team of Global Counsel employees who, having collectively built a market-leading business, now sadly find themselves having to be made redundant.'
Epstein Revelations Trigger Collapse
The firm's collapse comes directly after the release of the so-called Epstein files by US authorities, which revealed further details about Mandelson's friendship with the disgraced financier. Global Counsel announced earlier this month that it had severed all ties with Mandelson, divesting his shares and ending any association.
However, this action proved insufficient to stem the tide of departing clients. Major corporations including Barclays, Tesco, and Klarna recently terminated their contracts, while Vodafone placed its agreement under review. The firm had previously worked with a prestigious roster of clients including Palantir, GSK, TikTok, and the Premier League.
In a statement, Global Counsel acknowledged that 'the continuing maelstrom of political and media attention surrounding Peter Mandelson has made it challenging to continue with the business in its current form.'
Staff Devastation and Mandelson's Legacy
Staff at the company were informed during a meeting on Thursday afternoon that administration was necessary due to the links between Lord Mandelson and Epstein. A Global Counsel source described the situation as terrible for employees who had 'nothing to do with it,' adding that this marked 'the end of Mandelson's legacy.'
Another source told the Mail: 'It's a good firm of good people that have been swept away by the millstone of revelations that were nothing to do with the firm. This firm was run completely independently of Peter Mandelson for some years. He left as a director two years ago and then departed. Ninety per cent of the people here have never worked with him.'
Political Fallout and Police Investigation
The collapse coincides with ongoing political repercussions for Mandelson, who has quit the House of Lords, resigned from the Labour Party, and been removed from the Privy Council. Prime Minister Keir Starmer, who appointed Mandelson as Britain's ambassador to the US in 2025 before sacking him last September, has repeatedly apologised for the appointment.
Speaking to BBC Breakfast, Starmer stated: 'I apologised for my decision to appoint Peter Mandelson to the role of ambassador, and I apologise to the victims for believing his lies. I have reflected a lot on that because having worked so hard in this field, for me to have accepted his lies was a mistake.'
Meanwhile, the Metropolitan Police has launched an investigation into allegations that Lord Mandelson sent market-sensitive information to Epstein while serving as business secretary during the financial crisis. Officers have searched his homes in London and Wiltshire, though no charges have been brought and Mandelson denies any criminal offences.
Historical Connections Revealed
The Epstein files revealed extensive communications between Mandelson and the financier spanning years, including:
- Emails showing Mandelson offering emotional support to Epstein in 2008 before his guilty plea to sex offence charges
- Messages encouraging Epstein to 'fight for early release' from prison
- Apparent sharing of potentially market-sensitive government information in 2009
- Financial transactions between Epstein and accounts linked to Mandelson
- Continued contact between the two until at least 2016
Mandelson has expressed regret about his friendship with Epstein but denies breaking any laws or acting for personal gain. The former cabinet minister co-founded Global Counsel in 2010 after Labour lost that year's general election, stepping down from its board approximately two years ago.
Global Counsel's chief executive Benjamin Wegg-Prosser, another co-founder, announced his departure this month, stating it was 'time to draw a line' between the business and Lord Mandelson's actions. The firm's collapse marks a dramatic end to what was once considered one of Britain's most influential public affairs consultancies.
