What Happened

Global Counsel officially stopped trading and entered administration on February 19, 2026, with approximately 80 UK-based staff members being laid off from the 130-person firm. The collapse came after what administrators described as a “rapid and sudden loss of clients over recent weeks” following intensified scrutiny of co-founder Peter Mandelson’s relationship with Jeffrey Epstein.

Will Wright, UK chief executive of Interpath Advisory and joint administrator handling the case, stated that “the rapid and sudden loss of clients over recent weeks has had a monumental impact on the business.”

The firm’s CEO Benjamin Wegg-Prosser had resigned on February 6, 2026, citing “recent revelations about the firm’s links with Jeffrey Epstein.” Just 13 days later, the company confirmed it was entering administration after clients abandoned the firm.

Why It Matters

This collapse represents one of the most dramatic corporate casualties of the ongoing Jeffrey Epstein scandal, demonstrating how associations with the disgraced financier continue to have severe business consequences years after his death. The closure affects dozens of employees and highlights the reputational risks facing businesses with leadership connections to controversial figures.

For Mandelson personally, this adds to his recent dismissal as UK ambassador to the United States by Prime Minister Keir Starmer over the same Epstein connections. The collapse also eliminates a significant player in the UK’s political consulting landscape, where Global Counsel had operated as a major advisory firm since 2010.

Background

Global Counsel was founded in 2010 by Peter Mandelson, a prominent Labour Party figure and former European Commissioner, after Labour lost power. The firm grew into a significant political consulting business over its 16-year history.

The Epstein scandal surrounding Mandelson first emerged in 2019 when their friendship became public, but intensified in September 2025. Released Justice Department files revealed that Mandelson had continued his relationship with Epstein even after the financier’s 2008 conviction for soliciting prostitution from minors.

More damaging were email revelations showing that in 2009, Mandelson had allegedly passed sensitive government information to Epstein, whom he referred to as his “best pal.” These revelations ultimately led to Mandelson’s removal as UK ambassador to the US.

In an apparent attempt to shield the business from the scandal, Mandelson resigned from Global Counsel’s board in 2024 and sold his shareholding earlier in February 2026. However, these measures proved insufficient to prevent the client exodus that ultimately doomed the firm.

What’s Next

Interpath Advisory, the appointed administrators, are now assessing Global Counsel’s financial position and exploring potential restructuring options, though the firm has already ceased operations. The administrators will work to wind down the business and handle employee redundancies.

For the affected employees, the collapse means job searches in a competitive political consulting market. Many clients who severed ties with Global Counsel will likely need to find alternative advisory services.

The broader implications extend to corporate governance and reputation management, as the case demonstrates how personal associations of company founders can ultimately destroy otherwise successful businesses. This may prompt other firms to examine their own exposure to reputational risks from leadership connections.