LONDON (AP) – The lobbying firm co-founded by Peter Mandelson, a former U.K. ambassador to the United States, declared bankruptcy on Friday amid controversies regarding his connections to the late convicted sex offender Jeffrey Epstein. Global Counsel announced the cessation of its operations, resulting in the layoff of approximately 80 U.K.-based employees, following a significant loss of clients prompted by the unfolding scandal surrounding Mandelson's ties to Epstein, who died in a New York prison in 2019. The company originally employed around 130 people globally.
Mandelson, who helped establish Global Counsel in 2010 after the Labour Party lost power, stepped down from the board in 2024 and sold his stake in the firm earlier this month, seemingly to protect the company from the repercussions of the controversy. Interpath, a consulting firm, has since been appointed as administrators to explore options for the business and assess its assets.
Will Wright, U.K. chief executive of Interpath and joint administrator, stated, "While Global Counsel had grown over the past 15 years to become one of the U.K.’s leading public affairs consultancies, the rapid and sudden loss of clients over recent weeks has had a monumental impact on the business."
Emails released as part of the extensive documentation related to Epstein by the U.S. Justice Department unveiled that Mandelson shared sensitive and potentially market-altering government information with Epstein in 2009 while he was a prominent figure in the Labour government. Additionally, the documents detailed payments totaling $75,000 made by Epstein to Mandelson or his spouse, Reinaldo Avila da Silva, in 2003 and 2004. Mandelson has cast doubt on the authenticity of these bank statements and claimed he has no recollection of the transactions, initiating an investigation into the matter.
The emergence of the Epstein-related documents prompted a police search of Mandelson's residence in London as well as another property associated with him. The investigation by U.K. law enforcement is focused on potential misconduct in public office; however, Mandelson faces no allegations related to sexual offenses. In a related case, Andrew Mountbatten-Windsor was arrested just days before Mandelson, also in connection to suspicions of misconduct linked to his tenure as a trade envoy for the U.K.
Mandelson's appointment to the prestigious diplomatic role nearly resulted in British Prime Minister Keir Starmer losing his position as scrutiny grew over his judgment. Mandelson's career has been marred by controversy, including two resignations from Tony Blair's government at the beginning of the 2000s. Starmer terminated Mandelson's role in September after earlier emails surfaced, revealing Mandelson maintained his friendship with Epstein even after Epstein’s 2008 conviction for sex offenses involving a minor.
The government has announced plans to release documents related to the vetting process, which they believe will exculpate Starmer and demonstrate that Mandelson misled the public. The developments surrounding Mandelson's ties to Epstein continue to elicit significant public and political scrutiny, making the future of both Mandelson and Global Counsel uncertain.
