Global Counsel, the prominent lobbying and public affairs consultancy co-founded by former UK ambassador to the United States Peter Mandelson, has ceased trading and collapsed into a form of bankruptcy. The firm's downfall follows a severe client exodus triggered by ongoing revelations about Mandelson's connections to the late convicted sex offender Jeffrey Epstein.
Immediate Impact and Staff Layoffs
The company announced it had stopped all trading activities, resulting in the layoff of approximately 80 UK-based staff members. Global Counsel employed around 130 people worldwide, but many customers severed ties after details emerged regarding the extent of Mandelson's friendship with Epstein, who died in a New York prison in 2019.
Administration and Business Review
Consulting firm Interpath has been appointed as administrators to assess options for the business and review its assets. Will Wright, UK chief executive of Interpath and joint administrator, stated, "While Global Counsel had grown over the past 15 years to become one of the U.K.’s leading public affairs consultancies, the rapid and sudden loss of clients over recent weeks has had a monumental impact on the business."
Mandelson's Role and Resignation
Peter Mandelson, who jointly established Global Counsel in 2010 after the Labour Party lost power, resigned from its board in 2024. Earlier this month, he sold his shares in an apparent effort to shield the company from the scandal engulfing him. However, these actions proved insufficient to prevent the firm's collapse.
Epstein Document Revelations
Millions of pages of files released by the U.S. Justice Department related to Epstein included emails indicating that Mandelson passed sensitive government information to Epstein in 2009, when Mandelson was a senior member of the Labour government. This information was potentially market-moving.
The documents also revealed records of payments totaling $75,000 in 2003 and 2004 from Epstein to accounts linked to Mandelson or his husband, Reinaldo Avila da Silva. Mandelson has questioned the authenticity of these bank statements and, in a letter to Labour resigning from the party, claimed no recollection of receiving the money, pledging to investigate.
Police Investigations and Political Fallout
Following the release of the Epstein-related documents, UK police searched Mandelson's London home and another property associated with him. The investigation focuses on potential misconduct in public office, with Mandelson not accused of any sexual offenses. In a related development, Andrew Mountbatten-Windsor was arrested on Thursday on similar suspicions tied to his years as a UK trade envoy.
Starmer's Political Challenges
The appointment of Mandelson to the prestigious diplomatic role nearly cost British Prime Minister Keir Starmer his position, raising questions about his judgment. Mandelson's career has been marked by controversy, including two resignations from Tony Blair's governments around the turn of the century.
Starmer fired Mandelson in September, barely nine months after the appointment, following the publication of an earlier batch of emails showing Mandelson maintained a friendship with Epstein even after Epstein's 2008 conviction for sex offenses involving a minor.
The government plans to release files related to the vetting process, aiming to exonerate Starmer and demonstrate that Mandelson lied during the appointment procedures.
