An advisory firm co-founded by Peter Mandelson, who was fired as UK envoy to the United States over his links to Jeffrey Epstein, took a step nearer bankruptcy Friday after entering administration.
Global Counsel has stopped trading and appointed administrators, a process whereby a financially stricken company calls on outside expertise in a bid to salvage some assets.
“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,” said Will Wright, chief executive of Interpath, the administrators appointed to the company Friday.
“We will now undertake a detailed review of the company’s assets and liabilities and explore the best route to realize the company’s assets,” he added in a statement.
Several major clients, including Barclays, Tesco and English football’s Premier League, have cut ties with the firm in recent weeks, according to press reports.
“The continuing maelstrom of political and media attention surrounding Peter Mandelson has made it challenging to continue with the business in its current form,” Global Counsel posted Thursday on LinkedIn.
“To be clear, this will no longer be business as usual.”
The post added that “in the unlikely event that any ongoing servicing of clients is viable, this will be on a limited basis only.”
Prime Minister Keir Starmer, who appointed Mandelson as UK envoy to Washington, fired him from the post last September.
Mandelson faces a criminal investigation over claims he shared confidential information with Epstein nearly two decades ago.
He sold his shares in Global Counsel earlier this month, completing his exit from the firm after stepping down from its board two years ago.
Chief executive and co-founder Benjamin Wegg-Prosser also resigned this month.
“While today’s Global Counsel has no connection with Peter Mandelson, his role as a co-founder and his conduct, particularly in its early years, has indelibly colored the way Global Counsel is seen in the outside world,” the firm said.
After US courts released millions of documents related to convicted sex offender Epstein, the Financial Times reported that Mandelson and Wegg-Prosser sought Epstein’s advice on launching the company in 2010.
Documents also showed that Wegg-Prosser met Epstein while he was under house arrest in New York to present the firm’s business plan.
The scandal raised fresh questions about Starmer’s judgment after acknowledging he had appointed Mandelson as US ambassador despite knowing he had maintained links to the late Epstein.
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