Mandelson firm collapses into administration after Epstein revelations

Peter Mandelson's former lobbying business has collapsed into administration after an exodus of clients following revelations about his links to Jeffrey Epstein . Global Counsel, which has offices in cities including London , Berlin , Doha and Washington DC , announced it had stopped trading - with the majority of its 80-strong UK staff made redundant. Administrators at Interpath have been appointed for the London-based lobbying firm, which said it suffered a significant financial impact from a swathe of customers cutting ties with the firm. This left directors with no choice but to bring in administrators, it said. Global Counsel was co-founded by Lord Mandelson and previously worked with a roster of clients including Palantir, GSK, Vodafone, TikTok and the Premier League.

It is reported that Barclays , Tesco and Klarna were among those to recently end contracts, while Vodafone put its one under review, after the so-called Epstein files were released by US authorities. The firm announced earlier this month that it had cut ties with Mandelson , after documents released by the US Department of Justice revealed further details about his friendship with the financier. Will Wright, UK chief executive of Interpath and joint administrator, today said: '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.' Steve Absolom, managing director at Interpath and joint administrator, said: '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.'

Staff at the company were told in a meeting on Thursday afternoon that it was being placed into administration due to the links between Lord Mandelson and Epstein, it is understood. A Global Counsel source said it was a terrible situation for staff, who had 'nothing to do with it'. They added: 'It's the end of Mandelson's legacy.' Another Global Counsel source told the Mail: 'It's a good firm of good people that have been swept away by the millstone of revelations that were nothing to do with the firm. 'This firm was run completely independently of Peter Mandelson for some years. He left as a director two years ago and then departed. Ninety per cent of the people here have never worked with him.' In a Thursday statement the company - which has around 130 employees in Berlin, Brussels, London, Singapore, Washington DC and Doha - confirmed it had appointed administrators.

It said the 'continuing maelstrom of political and media attention surrounding Peter Mandelson has made it challenging to continue with the business in its current form'. The news came on the same day that Andrew Mountbatten-Windsor, who was also a friend of Epstein, was arrested on suspicion of misconduct in public office. He was released on Thursday evening after 12 hours in custody. The former Duke of York has previously denied any wrongdoing. The Metropolitan Police earlier this month launched an investigation following allegations that Lord Mandelson sent market-sensitive information to Epstein while he was business secretary in Gordon Brown's government during the financial crisis. Scotland Yard said its probe into Lord Mandelson over alleged misconduct in public office would 'take some time' after officers finished searching his homes in London and Wiltshire. Lord Mandelson has denied the Epstein files show he broke any laws or acted for personal gain. He has repeatedly said he regrets his friendship with Epstein.

The former Cabinet minister co-founded Global Counsel in 2010 after Labour lost that year's general election. He stepped down from its board about two years ago. Global Counsel's chief executive Benjamin Wegg-Prosser, another co-founder, announced his departure from the firm this month. He said he was stepping down as it was 'time to draw a line' between the business and the 'actions' of Lord Mandelson. Mr Wegg-Prosser was previously a political adviser and director of strategic communications under former prime minister Tony Blair, before going on to work as a director at a Russian media firm. Lord Mandelson has quit the House of Lords, resigned from the Labour Party, and been kicked out of the Privy Council in the wake of the Epstein files being released. He is still allowed to use his 'Lord' title until legislation is passed to formally remove it from him - something Sir Keir Starmer has vowed to do.

The Prime Minister, who fired Lord Mandelson as Britain's ambassador to the US last September, said on Thursday that 'nobody has been harder on me than I have been hard on myself' over his initial decision to appoint the peer to the Washington DC role. Sir Keir spoke to BBC Breakfast where he apologised again to victims, and repeated that giving Lord Mandelson the job was a mistake. He said: 'I apologised for my decision to appoint Peter Mandelson to the role of ambassador, and I apologise to the victims for believing his lies. 'I have reflected a lot on that because having worked so hard in this field, for me to have accepted his lies was a mistake. 'And that's why I wanted to apologise to the victims first and foremost for having accepted his lies, and I do so again now, if I may through you, to apologise for having believed the lies that were told to my team, and knowing the impact that that will have had on so many of the victims, and actually other people in Parliament and in my own party.

'That's why I apologise because I reflected good and hard on that, and as I said to my parliamentary Labour Party, nobody has been harder on me in relation to that than I have been hard on myself.' New revelations about Mandelson's ongoing communications following the shamed financier Epstein's conviction and jailing on child charges were revealed in the latest release of more than 3million Epstein-related documents. Emails appear to show Lord Mandelson passing potentially market-sensitive information to the financier in 2009, while he was Business Secretary in Gordon Brown's government. Emails published by the DOJ at the time also revealed the former cabinet minister offering emotional support to the financier in 2008, shortly before Epstein pleaded guilty to sexual offence charges and served time in Palm Beach County Stockade jail. He encouraged Epstein to 'fight for early release', and insisted: 'Your friends stay with you and love you.'

The Metropolitan Police has opened an investigation and visits were made this month to Mandelson's homes in Regent's Park, north London, and in Wiltshire. No charges have been brought and Mandelson denies any criminal offences. Global Counsel announced on February 6 its separation from Mandelson, saying in a statement: 'Global Counsel has reached an agreement for the divestment of Peter Mandelson's shares in Global Counsel . 'This transaction brings to an end any connection between Global Counsel and Peter Mandelson. This means he no longer has any shareholding, role, or association with Global Counsel, and exercises no influence over the company in any capacity.' The firm's chairman Archie Norman added: 'With the completion of this process today, Peter Mandelson no longer has any shareholding, role, or association with Global Counsel and has no influence over the firm in any capacity. 'Global Counsel is independently governed and led and continues to focus on serving its clients with integrity and professionalism.'