Global Counsel, the consultancy firm co-founded by former British cabinet minister Peter Mandelson, has collapsed with liabilities of £4.6 million, including over £600,000 owed to HM Revenue and Customs, according to a report filed by the company’s administrators. The firm ceased operations in February amid controversies linked to Mandelson’s past associations.

The company, which provided advisory services to notable clients such as Chinese-owned TikTok, US technology firm Palantir, and UK pharmaceutical company GSK, reportedly lost several key accounts following revelations about Mandelson’s connection to the convicted sex offender Jeffrey Epstein. Mandelson, who has denied any wrongdoing, resigned from Global Counsel’s board earlier this year but retained his shareholding in the business.

Concerns have also been raised about Mandelson’s ties to foreign states, particularly China, which reportedly led to initial vetting issues when he was considered for an ambassadorial role in Washington. These scrutiny and security questions seem to have overlapped with the firm’s difficulties.

The administrators’ statement of affairs, submitted to Companies House, indicated that Global Counsel had total liabilities of approximately £4.6 million, despite holding assets valued at more than £10.7 million. However, only about £2.7 million of these assets are expected to be recoverable. HM Revenue and Customs stands as the largest external creditor, with £645,789 outstanding.

Global Counsel was established in 2010 and employed around 100 people, predominately based in the UK, with others located in Berlin, Brussels, Doha, and Singapore. The report noted that employees were collectively owed £2.6 million at the time of the company’s collapse.

Ben Wegg-Prosser, the company’s chief executive and co-founder, who previously served as director of strategic communications for former Prime Minister Tony Blair, stepped down from his role in February amid the firm’s ongoing challenges. Documents released as part of the Epstein investigation revealed that Wegg-Prosser met Epstein in New York in 2010 to discuss the launch of Global Counsel, two years after Epstein’s conviction for soliciting minors. Wegg-Prosser described the encounter as “a short meeting of no consequence” that was never repeated.

The fallout surrounding these connections appears to have significantly impacted Global Counsel’s ability to retain clients and maintain financial stability, ultimately leading to its insolvency.