The influential lobbying firm Global Counsel, co-founded by Lord Mandelson, is reportedly on the verge of collapse. This precarious situation stems from significant client departures, precipitated by the emergence of documents linking the firm's founders to the convicted sex offender Jeffrey Epstein. The firm, which employs over 100 people across multiple international offices and has advised major corporations, is now facing administration.
Background and Timeline of Events
Global Counsel, established as a prominent lobbying entity in Westminster, has seen its operations severely disrupted in recent weeks.
February 6, 2026: Benjamin Wegg-Prosser, co-founder and chief executive, stepped down from his role.
Following February 6: Reports indicate staff were informed that client departures had made the firm's situation unsustainable.
Recent Weeks: The publication of documents related to the Jeffrey Epstein case has brought to light apparent links involving Lord Mandelson and Benjamin Wegg-Prosser with Epstein.
Simultaneous to Client Exodus: Companies including Shell, TikTok, Barclays, Tesco, and the Premier League have reportedly ended their business relationships with Global Counsel.
Current Status: The firm is reported to be calling in administrators, signaling an impending collapse.
Key Actors and Their Roles
The situation at Global Counsel involves several key individuals and entities:
Lord Mandelson: A co-founder of Global Counsel. His historical ties to Jeffrey Epstein, particularly regarding advice sought on founding the firm, have become a central issue. He has resigned from the House of Lords.
Benjamin Wegg-Prosser: Co-founder and former chief executive of Global Counsel. Documents suggest he met with Jeffrey Epstein and shared the firm's business plan with him while Epstein was under house arrest. He has stepped down as CEO.
Global Counsel Staff: Over 100 employees are affected by the firm's potential collapse. They were reportedly informed of the grave circumstances by a new leadership team.
Clients: A number of high-profile clients, including major corporations and sports organizations, have terminated their contracts with Global Counsel.
KKR: The US investment firm KKR is named as a recent global entity that withdrew its business from the company.
The Epstein Connection and its Impact
The resurgence of information linking Global Counsel's founders to Jeffrey Epstein has been the primary catalyst for the firm's current crisis.
Documents Unveiled: Newly published files associated with Jeffrey Epstein have illuminated Lord Mandelson's connection to the disgraced financier.
Founding of Global Counsel: Evidence suggests that Lord Mandelson consulted Epstein for advice when establishing Global Counsel.
Wegg-Prosser's Involvement: Furthermore, Benjamin Wegg-Prosser reportedly met with Epstein and shared the firm's business plan during Epstein's house arrest in New York.
Client Reaction: This information has led to a significant exodus of clients, who appear to have distanced themselves from the firm due to these associations. Companies have reportedly tried to sever ties with the founders, but the damage to the firm's reputation has proven insurmountable.
Firm's Efforts to Mitigate Damage
Global Counsel has reportedly taken steps to address the crisis and distance itself from the scandal.
Severing Ties with Mandelson: The firm announced it had cut ties with Lord Mandelson, stating he no longer held any shareholding, role, or influence.
Wegg-Prosser's Departure: The departure of Benjamin Wegg-Prosser as chief executive was also announced, a move seemingly aimed at apportioning responsibility and containing the fallout.
New Leadership: A new leadership team, including Archie Norman, chair of M&S, was appointed. This team ultimately made the decision to call it a day.
Limited Success: Despite these efforts, the firm was unable to "staunch the flow of clients out of the door," indicating that the measures were insufficient to repair the damage.
Legal and Political Repercussions
Beyond the immediate business crisis, the scandal has led to significant personal repercussions for Lord Mandelson.
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Resignation from House of Lords: Lord Mandelson has resigned his seat in the House of Lords.
Potential Loss of Peerage: He is widely expected to forfeit his peerage in the coming months, a serious consequence for a political figure.
Expulsion from Labour Party: Reports also mention his sacking and decision to expel him from the Labour Party, though the exact timing and formal details are not fully elaborated.
Expert Perspectives and Attributions
The situation has drawn comment from various sources, highlighting the severity of the reputational damage.
A Global Counsel employee informed Sky News about the internal discussions regarding the company's effective closure following the CEO's departure and client exodus.
Sky's City editor, Mark Kleinman, noted KKR's decision to pull its business, describing it as the latest global name to do so.
The Guardian attributes the collapse to a "maelstrom" caused by Peter Mandelson's connections.
Conclusion and Outlook
Global Counsel stands on the brink of administration, a consequence directly tied to the revelations concerning its co-founders' associations with Jeffrey Epstein. Despite the firm's attempts to sever ties with Lord Mandelson and Benjamin Wegg-Prosser, the reputational damage appears to have been too profound. The exodus of major clients, including Barclays and Tesco, has rendered the business model unsustainable.
Immediate Future: The firm is expected to enter administration, with recruiters being brought in to assist staff with their next career steps.
Long-Term Impact: The case serves as a stark example of how historical associations, even when seemingly distant, can have disruptive and ultimately fatal consequences for modern businesses operating in a sensitive political and public sphere. The actions of Lord Mandelson and Mr. Wegg-Prosser, particularly in the early years of the company, have indelibly coloured its perception.
Unresolved Questions: While the firm's collapse is largely attributed to the Epstein links, the specific details and extent of financial impact from each client's departure remain to be fully clarified through the administration process.
Sources Used
BBC News: Details the co-founder's departure, client exodus, and links to Epstein as reasons for the firm's precarious state. https://www.bbc.co.uk/news/articles/cz9q57y9y3xo
Sky News: Reports on the decision to effectively shut down the company following the CEO's departure and client defections, mentioning KKR's withdrawal. https://news.sky.com/story/peter-mandelson-founded-lobbying-firm-global-counsel-on-brink-of-closure-13509596
The Independent: States the firm's collapse is linked to Epstein links being exposed. https://www.independent.co.uk/bulletin/news/mandelson-epstein-global-counsel-administration-b2923761.html
The Guardian: Reports Global Counsel calling in administrators, blaming the "maelstrom" of Peter Mandelson's Epstein connections, and notes efforts to distance the company. https://www.theguardian.com/politics/2026/feb/19/global-counsel-calls-in-administrators-peter-mandelson-epstein
Evening Standard: Mentions Global Counsel informing staff it is facing collapse due to the impact of Lord Mandelson's historic ties to Epstein. https://www.standard.co.uk/business/business-news/peter-mandelson-press-association-keir-starmer-labour-vodafone-b1271702.html
Financial Times: Notes Barclays cutting ties with the lobbying firm founded by Peter Mandelson. (Summary extraction failed or content too short, but the article title indicates relevance to client departures). https://www.ft.com/content/59f92e57-36a1-4996-8c3b-883b62630800
