The crisis intensified following the recent release of “Epstein files” by US authorities. The documents reportedly indicate Mandelson passed potentially market-sensitive information to Epstein in 2009, while serving as business secretary in Gordon Brown’s government.
Metropolitan Police are investigating Mandelson for alleged misconduct in public office. Officers have searched his London and Wiltshire homes.
Distance attempts failed
Global Counsel had attempted to distance itself from the scandal. The firm stressed earlier this month that Mandelson no longer held any shareholding, role, association or influence over the company. He had stepped down from the board approximately two years ago.
Co-founder Benjamin Wegg-Prosser, a former political adviser under Tony Blair, also departed earlier this month. But the moves proved insufficient to stem client departures.
Administrator response
Will Wright, UK chief executive of Interpath and joint administrator, 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, added: «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.»
Administrators are reviewing the business’s assets and considering options for its future. Mandelson and Wegg-Prosser founded Global Counsel in 2010 following Labour’s loss in that year’s general election.
Note: This article was created with Artificial Intelligence (AI).