Global Counsel lobbying firm closes down in London after clients leave due to Epstein links

Global Counsel, a London lobbying firm founded by Lord Mandelson, has shut down. This happened because major clients like Shell and TikTok left after his past links to Jeffrey Epstein were revealed. Over 100 staff are now jobless.
By Newsroom | Business, Politics |

Loss of Major Clients Forces Business Collapse

Global Counsel, a prominent lobbying firm co-founded by Lord Mandelson, has entered administration, signaling the end of its operations. The firm's collapse follows a significant exodus of major clients, directly linked to emerging details about Lord Mandelson's past associations with the convicted sex offender Jeffrey Epstein. The firm's future became untenable after these revelations led several high-profile clients to sever their ties.

Lobbying firm co-founded by Mandelson goes into administration - 1

Timeline of Events and Key Actors

The crisis for Global Counsel escalated following the release of documents from the Epstein files. These documents brought to light apparent connections between Lord Mandelson and Jeffrey Epstein.

Lobbying firm co-founded by Mandelson goes into administration - 2

  • February 6: Benjamin Wegg-Prosser, co-founder and chief executive, stepped down from his role.

  • Subsequent Weeks: Leading clients, including Shell, TikTok, and Barclays, reportedly began cutting ties with Global Counsel. The Premier League and Tesco are also named among the companies that deserted the firm.

  • Recent Days/Weeks: The firm publicly attempted to distance itself from its founders and their alleged associations. A new leadership team, appointed after the chief executive's departure and including Archie Norman, ultimately made the decision to cease trading.

  • Present: Interpath, represented by Steve Absolom and Nick Stockley (of Mayo Wynne Baxter), has been appointed as administrators for the London-based business.

Lord Mandelson himself has reportedly resigned from the House of Lords and is expected to face further consequences regarding his peerage.

Lobbying firm co-founded by Mandelson goes into administration - 3

Evidence of Client Departure and Firm's Response

  • Leading clients cut ties with the company after details emerged of Lord Mandelson's apparent links with the convicted sex offender Jeffrey Epstein. (Article 1)

  • Staff were informed the move became inevitable when leading clients severed their relationships with the company after details emerged of apparent links with the convicted sex offender Jeffrey Epstein. (Article 2)

  • Sky News reported that KKR, the US investment firm, had become the latest global name to pull its business from the company. (Article 3)

  • The firm stated it had suffered a significant impact from customers cutting ties. (Article 3)

  • Companies including Barclays, Tesco and the Premier League have all deserted Global Counsel, despite the company’s efforts to sever ties with Mandelson and the company’s co-founder Benjamin Wegg-Prosser. (Article 6)

  • Global Counsel was unable to staunch the flow of clients out of the door, despite efforts to distance itself from its founders. (Article 6)

  • The impact of Lord Mandelson’s historic ties to Epstein are said to be behind a number of high-profile customers choosing to end their relationship with the firm. (Article 5)

Mandelson's Role and Connections

  • The Epstein files revealed details of Lord Mandelson's links with the disgraced financier Jeffrey Epstein. (Articles 1, 2, 3)

  • The files showed that Mandelson sought Epstein’s advice on founding Global Counsel. (Article 6)

  • Documents within the Epstein files revealed direct correspondence between the former US ambassador (Lord Mandelson) and the late financier. (Article 5)

  • Lord Mandelson has resigned from the House of Lords, and is widely expected to lose his peerage in the coming months. (Article 3)

  • The firm stressed that Lord Mandelson no longer had any shareholding, role or association with the company and no influence over the firm at the time of its collapse. (Article 5)

Wegg-Prosser's Involvement

  • Benjamin Wegg-Prosser stepped down as chief executive on February 6. (Articles 1, 2, 3)

  • The Epstein files revealed that Wegg-Prosser had met the sex offender and shared the company’s business plan while Epstein was under house arrest in New York. (Article 6)

Operational Scope and Staff Impact

Global Counsel operated as a highly influential lobbying firm, advising prominent clients.

Lobbying firm co-founded by Mandelson goes into administration - 4

  • Key Clients: Shell, TikTok, Barclays, Tesco, Premier League, and KKR. (Articles 1, 2, 3, 6)

  • Global Presence: Offices in Berlin, Brussels, Singapore, Washington DC, and Doha. (Articles 1, 2)

  • Staff Numbers: Employs over 100 people. (Article 2)

  • Impact on Employees: Steve Absolom, managing director at Interpath, stated, "Our immediate focus is on supporting the talented and loyal UK team of Global Counsel employees who, having collectively built a market leading business, now sadly find themselves having to be made redundant." (Article 1)

Expert Observations

  • Nick Stockley, partner at law firm Mayo Wynne Baxter, commented that any new business connected with Global Counsel will find it "very difficult to shake off the Mandelson stigma." (Article 1)

  • 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 coloured the way Global Counsel is seen in the outside world. (Article 6)

Conclusion and Implications

The administration of Global Counsel marks a significant business failure directly attributable to the reputational damage stemming from Lord Mandelson's past connections to Jeffrey Epstein. The exodus of major clients proved to be an insurmountable challenge, leading to the firm's cessation of operations. The impact extends to the firm's employees, who face redundancy. The situation also raises questions about the long-term implications for individuals associated with such scandals, as highlighted by expert commentary on the enduring "Mandelson stigma." The firm's attempt to distance itself from its co-founders, including significant efforts over the past two weeks, ultimately proved insufficient to retain its client base and financial viability.

Read More: ASOS Co-Founder Quentin Griffiths Dies in Thailand Fall from 17th Floor

Sources:

Frequently Asked Questions

Q: Why did the Global Counsel lobbying firm in London close?
Global Counsel closed because many of its biggest clients, like Shell, TikTok, and Barclays, stopped working with them. This happened after details came out about Lord Mandelson's past links to Jeffrey Epstein.
Q: Who is affected by the closure of Global Counsel?
Over 100 employees of Global Counsel in London have lost their jobs. Also, clients who used the firm's lobbying services will need to find new ones.
Q: What is the main reason clients left Global Counsel?
The main reason clients left was the resurfacing of information about Lord Mandelson's past connections with Jeffrey Epstein. This caused a lot of bad publicity and reputational damage for the firm.
Q: What happened to Lord Mandelson after Global Counsel closed?
Lord Mandelson has reportedly resigned from the House of Lords. He is also expected to face consequences regarding his peerage.
Q: Did Global Counsel try to stop clients from leaving?
Yes, the firm tried to distance itself from its founders, including Lord Mandelson and co-founder Benjamin Wegg-Prosser. However, these efforts were not enough to keep the clients and save the business.
Q: When did the firm officially stop trading?
The firm has entered administration, which means it has stopped trading. This decision was made by a new leadership team after the chief executive stepped down and clients began to leave.