LONDON — Global Counsel, the prominent lobbying consultancy co-established by former UK Ambassador to the United States Peter Mandelson, has entered administration—a form of bankruptcy protection—following a massive client exodus triggered by revelations about Mandelson’s association with convicted sex offender Jeffrey Epstein.
The firm announced it ceased operations on Friday, resulting in approximately 80 UK staff redundancies. Global Counsel, which employed around 130 people globally, suffered what administrators described as a ‘monumental’ loss of business after clients severed ties en masse. The collapse follows disclosures in recently unsealed US Justice Department documents showing extensive connections between Mandelson and Epstein.
Mandelson, who founded the consultancy in 2010 after leaving government, resigned from Global Counsel’s board in 2024 and divested his shares earlier this month in an apparent effort to shield the company from the escalating scandal. Consulting firm Interpath has been appointed to assess options for the business and evaluate its remaining 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 UK’s leading public affairs consultancies, the rapid and sudden loss of clients over recent weeks has had a monumental impact on the business.’
The crisis emerged from documents revealing that Mandelson, during his tenure as a senior member of the Labour government in 2009, transmitted sensitive government information—potentially capable of moving markets—to Epstein, whom he described as his ‘best pal.’ Additional records indicated payments totaling $75,000 in 2003-2004 from Epstein to accounts associated with Mandelson or his husband, though Mandelson has questioned their authenticity.
UK police have conducted searches at Mandelson’s London residence and another property connected to him as part of an investigation into potential misconduct in public office. Notably, Mandelson faces no allegations of sexual offenses. The probe follows a similar arrest of Andrew Mountbatten-Windsor on Thursday regarding his conduct during his tenure as UK trade envoy.
Prime Minister Keir Starmer’s appointment of Mandelson to the ambassadorial role nearly cost him his leadership position amid scrutiny of his judgment. Starmer ultimately dismissed Mandelson in September after earlier email releases demonstrated Mandelson maintained ties with Epstein following the financier’s 2008 conviction for sex crimes involving a minor. The government intends to release vetting documentation that it believes will exonerate Starmer and demonstrate Mandelson provided false information.