STORY
London-based advisory firm Global Counsel has announced its intention to collapse into administration, bringing a sudden end to one of the most influential political consultancies in Westminster. The firm, which was co-founded by the former Labour minister Peter Mandelson, confirmed today that it could no longer withstand the commercial fallout from a mounting scandal involving Mandelson’s past ties to the convicted sex offender Jeffrey Epstein. In a statement released to staff and clients, the firm described the current situation as a maelstrom that has made continued operations untenable.
The collapse follows a week of rapid disintegration for the consultancy. Major corporate clients, including the investment giant KKR and Barclays, had already moved to sever ties with the firm after new details emerged from a tranche of unsealed emails. These documents reportedly suggested that Epstein had been involved in the very early stages of the firm’s founding in 2010. While Global Counsel had recently attempted to distance itself from the controversy by facilitating the sale of Mandelson’s remaining 21% stake to the new chief executive Rebecca Park, the move was ultimately unable to stem the loss of institutional trust.
The crisis deepened further when Benjamin Wegg-Prosser, a co-founder and former director of strategic communications for Tony Blair, resigned as chief executive earlier this month. His departure was triggered by revelations that he and Mandelson had met with Epstein on multiple occasions during the firm’s infancy. The company will continue to operate only in a limited capacity during administration, with around 100 jobs feared to have been lost.