Lobbying Firm Co-Founded by Mandelson Goes Into Administration
Two days ago, news broke that Global Counsel, the lobbying firm co-founded by Peter Mandelson, has entered administration. This development follows the withdrawal of major clients amid revelations concerning Lord Mandelson’s ties to convicted sex offender Jeffrey Epstein.
Major Client Departures Have a Monumental Impact
– The fallout from these connections had a monumental impact on the business, forcing directors into an unavoidable decision to seek administration, as stated by administrators Interpath.
– A senior source described the situation as a total nightmare and unfair, emphasizing the potential loss of 120 jobs.
– On Thursday, Global Counsel cautioned that a significant number of redundancies would ensue once administrators took over.
Origins and Clientele of Global Counsel
– Global Counsel was established by Lord Mandelson and Benjamin Wegg-Prosser following Labour’s defeat in the 2010 general election.
– The firm catered to high-profile clients, including Shell, TikTok, and Barclays, with offices in key global cities such as Berlin, Brussels, Singapore, Washington DC, and Doha.
Leadership Changes and Consequences
– Lord Mandelson stepped down from the board of Global Counsel in 2024, though he held onto shares until earlier this month.
– Co-founder Wegg-Prosser resigned as chief executive on February 6.
Fallout from Epstein Connections
– The firm’s decline accelerated after documents from the Epstein files revealed Lord Mandelson’s associations with the disgraced financier. These documents also noted a meeting between Wegg-Prosser and Epstein in 2010, two years post Epstein’s conviction for soliciting prostitution from a minor.
– Epstein met his end in New York in 2019 while awaiting trial on sex trafficking charges.
Administrative Actions and Future Outlook
Will Wright, UK chief executive of Interpath, commented on the swift loss of clients: The rapid and sudden loss of clients over recent weeks has had a monumental impact on the business. Global Counsel has ceased trading as administrators undertake a thorough review of the company’s assets and liabilities, exploring potential paths forward.
Steve Absolom, managing director at Interpath, remarked that their focus is on supporting the dedicated UK team at Global Counsel, who have built a market-leading business but now face redundancy.
Nick Stockley, a partner at law firm Mayo Wynne Baxter, commented on the tarnished reputation of the firm, stating that any future business affiliated with Global Counsel would struggle to shed the Mandelson stigma. He noted that the primary asset for sale would be the customer base, which has rapidly diminished. He added that the role of the administrator is likely to shift toward managing a complete closure of the business while recovering what assets they can.
The revelations surrounding the lobbying firm co-founded by Mandelson have ushered in a wave of uncertainties, casting a shadow over its future and leaving employees and creditors in a precarious situation.