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Global Counsel, the lobbying company co-founded by Peter Mandelson, has entered administration following a significant loss of clients. This downturn came after revelations about Lord Mandelson’s alleged connections to Jeffrey Epstein, a convicted sex offender. The situation has severely affected the firm’s operations, leaving its directors with no alternative but to initiate administration proceedings, according to a statement released by Interpath on Friday.
A senior insider described the collapse as “a total nightmare and unfair,” highlighting the potential consequences for the workforce, which could see up to 120 jobs lost. The firm had already announced on Thursday that administrators would be implementing substantial redundancies upon taking control. Global Counsel was originally established by Lord Mandelson and Benjamin Wegg-Prosser shortly after Labour’s defeat in the 2010 general election.
Global Counsel provided consultancy to major clients including Shell, TikTok, and Barclays, maintaining offices across key locations such as Berlin, Brussels, Singapore, Washington DC, and Doha. Lord Mandelson stepped down from the company’s board earlier in 2024 but retained a shareholding until recently. Meanwhile, his co-founder, Wegg-Prosser, resigned from the role of chief executive on February 6. Notably, corporate records also revealed a meeting in 2010 between Wegg-Prosser and Epstein, two years after Epstein’s conviction for soliciting prostitution and a minor.
Will Wright, UK chief executive at Interpath, commented on the rapid client exodus, emphasizing the “monumental impact” it had on the business. The firm has halted trading while administrators conduct a thorough review of its financial standing and consider the future course. Steve Absolom, managing director at Interpath, stated their priority remains supporting the dedicated UK staff, many of whom face impending redundancy after contributing to the firm’s success.
Legal expert Nick Stockley from Mayo Wynne Baxter remarked on the challenges facing any successor ventures linked to Global Counsel, noting the difficulty in overcoming the “Mandelson stigma.” He explained that the company’s main asset, its client list, has significantly dwindled, and that administrators will likely oversee a complete shutdown aimed at asset recovery. Creditors such as suppliers, landlords, and subcontractors are expected not to receive full payment, while all employees are anticipated to lose their jobs
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