Lobbying Firm Co-Founded by Mandelson Goes into Administration
Global Counsel, the lobbying firm co-founded by Peter Mandelson, has officially gone into administration, marking a significant downturn for the company. This decision follows the departure of key clients amid revelations about Lord Mandelson’s connections to the convicted sex offender Jeffrey Epstein.
Major Impact on Global Counsel
– Client Loss: Leading clients severed relationships with Global Counsel, leading to a rapid decline in business and leaving its directors with no option, according to administrators Interpath.
– Job Concerns: A senior source described the situation as a total nightmare and unfair, warning that up to 120 jobs could be at risk. There has already been a warning that a significant number of redundancies would be made as administrators step in.
History and Background
– Founding: Global Counsel was established by Lord Mandelson and Benjamin Wegg-Prosser following the Labour Party’s defeat in the 2010 general election.
– Clientele: The firm served high-profile clients such as Shell, TikTok, and Barclays, operating offices in locations including Berlin, Brussels, Singapore, Washington, D.C., and Doha.
– Leadership Changes: Lord Mandelson stepped down from the board in 2024 but remained a shareholder until recently. Wegg-Prosser resigned as CEO on February 6.
The Epstein Controversy
The firm’s future became precarious following the publication of documents linked to Epstein, which shed light on both Mandelson’s and Wegg-Prosser’s connections to the disgraced financier. Notably, the documents reveal a 2010 meeting between Wegg-Prosser and Epstein, occurring just two years after Epstein’s conviction for soliciting prostitution and a minor. Epstein died in 2019 while awaiting trial for sex trafficking charges.
Statements from Administrators
– Monumental Impact: Will Wright, UK chief executive of Interpath, noted that the rapid and sudden loss of clients has had a monumental impact on the business.
– Cease Trading: The firm has ceased trading as administrators conduct a thorough review of its assets and liabilities.
Outlook for Future Business
Steve Absolom, managing director at Interpath, stated that their primary focus is on supporting the talented UK team of Global Counsel employees, who built a market-leading firm but now face redundancy. Nick Stockley, a partner at Mayo Wynne Baxter, warned that any future business associated with Global Counsel would struggle to shake off the Mandelson stigma. He commented on the situation, emphasizing that while the client book remains a primary asset, it has diminished significantly.
As Global Counsel moves through this difficult phase, the administrators will likely manage a full shutdown of the business and recover what they can, although creditors—including suppliers, landlords, and subcontractors—are unlikely to be paid in full.
In conclusion, the collapse of the lobbying firm co-founded by Mandelson not only represents a significant loss for its employees but also raises questions about future business prospects amid the fall from grace linked to Epstein’s legacy.