Mandelson's consultancy firm set to enter administration after Epstein links

By Sam Tabahriti

LONDON, Feb 19 (Reuters) - Global Counsel, the consultancy firm co-founded by former British ambassador to the United States Peter Mandelson, is preparing to enter administration as early as Friday, a source familiar with the matter told Reuters.

Staff were told on Thursday that the move followed a wave of client departures after disclosures about Mandelson's past links to the late U.S. sex offender Jeffrey Epstein, the source said.

The firm did not respond to a request for comment.

Global Counsel cut ties with Mandelson in September last year, Reuters had reported, the day Prime Minister Keir Starmer sacked him as Britain's ambassador to Washington.

Benjamin Wegg-Prosser, who co-founded Global Counsel alongside Mandelson, stepped down as chief executive earlier in February.

Wegg-Prosser had met Epstein in February 2010 while the sex offender was under house arrest, according to documents in the Epstein files seen by Reuters.

Global Counsel said in a statement earlier this month that it had reached an agreement to divest Mandelson's shares, bringing to an end "any connection" between the firm and the former British envoy.

The shares owned by Mandelson, whose role in the firm ended when he was named ambassador, were acquired by an existing board member, shareholder and the firm's managing director.

Following more revelations of the extent of Mandelson's relationship with Epstein, KKR, Barclays, Klarna, Phoenix Group, Tesco and the Premier League have all cut ties with Global Counsel, while Vodafone said its contract was coming to an end in March and GSK said it had no plans to work with the firm further.

Being named in the files is not evidence of criminal activity.