The advisory firm co-founded by Lord Peter Mandelson collapsed owing £4.5 million to creditors, including over half a million pounds to HM Revenue and Customs, according to newly filed documents.
Collapse Amid Scandal
Global Counsel went into administration in February, a development that unfolded amidst the fallout from the scandal surrounding Lord Mandelson’s historical connections to convicted paedophile financier Jeffrey Epstein. The firm, which provided strategic advisory services, saw a significant exodus of clients following renewed scrutiny of its founder’s past associations.
Financial Details Revealed
Figures filed at Companies House indicate that Global Counsel owed a total of £4.54 million at the time of its insolvency. However, the company only had £2.7 million in assets available for preferential creditors. Among those owed money is HM Revenue & Customs, which is listed as a creditor for £645,789.
Administrators from Interpath were appointed in February to handle the winding down of the London-based lobbying business. The firm had previously stated that it suffered a severe financial blow after a wave of customers terminated their contracts, driven by concerns over its association with the former Labour politician and UK ambassador to the United States.
The directors claimed they had no alternative but to call in administrators, despite insisting that Lord Mandelson no longer held any shareholding, role, or influence over the company.
Timing and Arrest
The collapse of Global Counsel on February 20 occurred just three days before Lord Mandelson was arrested by police on allegations that he passed sensitive information to Jeffrey Epstein during his tenure as Business Secretary. Lord Mandelson was subsequently released on bail and has not been charged with any offence.
Lord Mandelson's Role
At one point, Lord Mandelson owned a 21% stake in Global Counsel, but he is not listed as a creditor in the statement of affairs filed with Companies House. He co-founded the firm alongside Benjamin Wegg-Prosser in 2010, following Labour’s defeat in the general election. Lord Mandelson stepped down from the board approximately two years before the company’s collapse.
Client Roster
Global Counsel had cultivated a diverse client base, including prominent names such as Palantir, GSK, Vodafone, OpenAI, TikTok, and the English Premier League. The loss of these contracts contributed to the firm’s financial distress and eventual administration.
