Global Counsel, an international advisory and public affairs firm co-founded by Lord Peter Mandelson, has entered administration after a rapid loss of clients following renewed controversy over Mandelson’s historic association with the late financier Jeffrey Epstein.

Senior leadership at the firm informed staff that the controversy surrounding the firm’s founding and Mandelson’s name had so damaged its reputation that it was no longer sustainable as a going concern, prompting directors to appoint administrators to take control of the business and its assets.

The firm, which employs about 120 people across London, Berlin, Brussels, Singapore, Washington DC and Doha, is expected to make significant redundancies as the administration process unfolds.

What is confirmed is that Global Counsel has formally called in administrators after half its client base withdrew in the past fortnight / What’s still unclear is the precise timing and terms on which any parts of the business might be acquired by rival firms and how many employees will ultimately be retained by buyers or placed in redundancy.

The crisis for the firm followed public release of federal records and investigative material linking Mandelson with Epstein, including communications from the period when Global Counsel was launched.

Although Mandelson had stepped away from the company’s board before his appointment as the UK’s ambassador to the United States and later divested his shareholding, the controversy triggered a wave of client departures.

High-profile organisations such as Barclays, Tesco, the fintech firm Klarna, the Phoenix Group, KKR and GSK have all ended or reviewed their engagements with Global Counsel, and Vodafone placed its contract under review.

Global Counsel’s leadership, including chief executive Rebecca Park and chairman Archie Norman, said in internal communications that the reputational impact of the “Mandelson legacy” had made continued operation untenable.

The firm has arranged for Interpath to be appointed administrators and is expected to cease operations in its current form.

Co-founder Benjamin Wegg-Prosser resigned as CEO earlier this month amid the escalating controversy.

The firm had previously sought external funding to stabilize its finances and pursue a buyer for parts of its business, but those efforts failed to counteract the loss of clients.

It is anticipated that some teams or business units may be purchased by rival advisory firms during the administration process.

Global Counsel’s collapse illustrates how political and reputational issues tied to senior figures can swiftly affect corporate advisory businesses and client confidence, especially in sectors where public trust and political access are central to commercial value.