The advisory firm founded by Lord Mandelson is on the verge of being placed in administration, a member of staff has told Sky News.
Global Counsel (GC), which severed its connection to the former government minister and ambassador to the US earlier this month amid his association with the late paedophile financier Jeffrey Epstein, employs around 130 staff.
It is understood that a new leadership team, appointed after GC’s chief executive departed on 6 February and including the chair of M&S Archie Norman, took the decision to call it a day amid an exodus of clients.
Mark Kleinman blog: See the latest from Sky’s City editor
Sky News reported a week ago that KKR, the US investment firm, had become the latest global name to pull its business from the company in the wake of Peter Mandelson‘s sacking in Washington and decision to expel him from the Labour Party over his links to Epstein.
The GC employee told Sky News: “Officially, we were told around 1pm today at a company all hands meeting, but I think everyone knew the writing was on the wall as many of the tech and financial big name clients had left.
“So I think naturally people’s conclusion was ‘who was paying us?’. But I don’t think anyone realised the extent of the damage. I think a lot of people thought the junior staff would be cut, but it wasn’t apparent until today that everything was going to be shut down.
Mark Kleinman blog | See the latest stories from Sky News’ City editor
Norwegian green steel group in running to buy major UK producer
Retail warns of high price for workers from government costs ahead
“In the meeting they said tomorrow the administrators would be coming and the office lease will be coming in the next few days. Recruiters will be coming in to help people with the next steps.
“People had questions about what their entitlements are, and the chairman Archie was also there and made a short statement.
“Archie Norman said essentially that this isn’t a reflection of anyone’s work or anything. We have been unfairly caught up in this, and alluded to his previous experience delivering with crises.
“Mandelson wasn’t explicitly mentioned at any point, but Rebecca Park [new chief executive] said this has come about unfairly hitting the employees because of the association.
For more information about how we use your data and your rights, you can visit our Privacy Centre.
“Actually a lot of people at the company are relatively new and have never met Mandelson, and he wasn’t involved in the commercial activities for a long time. It is tough for all of us.
“I know for one of our clients that is a global streaming company that Mandelson was an issue. For public companies that are listed with a UK exposure, it’s a big issue.”
GC later said in a statement: “After an exhaustive review of the options available to the company, the Board of Global Counsel has decided to ask the UK courts to appoint Interpath as an administrator to take control of and realise the assets of the company.
“To be clear, this will no longer be business as usual as the Administrators-in-waiting have already indicated that, in the unlikely event that any ongoing servicing of clients is viable, this will be on a limited basis only.
“Inevitably therefore, this will result in a significant number of redundancies being made by the Administrators when they take control of the company tomorrow.”
It added: “The Board wishes to thank: firstly, all our staff who have stood together in very difficult times and shown exceptional resilience in the face of circumstances beyond their control; secondly, our clients, who have been placed in a difficult position by these events and whose generous support has been a tribute to our teams, and; thirdly, our shareholders who have suffered a material loss through no fault of their own.”
Global Counsel was founded in November 2010, and the new leadership team had no association to its co-founders.
It offered lobbying and other advisory services to many top global firms. Lord Mandelson’s appointment as US ambassador by Sir Keir Starmer in late 2024 meant he had to step back from any role in its day-to-day business.
Be the first to get Breaking News
Install the Sky News app for free
GC had declared earlier this month that a divestment in his shares was being completed in a move that brought “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 company said.
Lord Mandelson has resigned from the House of Lords, and is widely expected to lose his peerage in the coming months.
