Global Counsel, an advisory firm co-founded by former Labour peer Peter Mandelson, has announced it will enter administration, citing a significant crisis precipitated by revelations of Mandelson's past associations with convicted sex offender Jeffrey Epstein. This association has resulted in the firm losing crucial clients, including high-profile companies such as Barclays and Tesco, which have distanced themselves from Global Counsel amid the scandal. The firm has made efforts to distance itself from Mandelson, but the damage to its reputation appears to be irreversible.

Mandelson's connection to Epstein dates back to 2010 when he allegedly sought Epstein's advice on launching Global Counsel shortly after Labour's defeat in that year's general election. Staff at Global Counsel have reportedly been informed that the controversy has tarnished the "Peter Mandelson legacy" and contributed significantly to the firm’s current turmoil. The fallout seems so dire that the company has now pursued a court appointment for administrators to take charge and manage their assets.

This situation raises critical questions about the reputational risks faced by companies and the challenges advisory firms encounter when their founders are embroiled in significant public scandals. As Global Counsel seeks to navigate through this crisis, it underscores the delicate balance between personal associations of leadership figures and the operational integrity of an organization, particularly in a highly interconnected advisory environment.