Consultancy co-founded by Peter Mandelson falls into administration | Peter Mandelson

The consultancy co-founded by Peter Mandelson collapsed into administration after some clients cut ties with the firm over the former ambassador’s association with convicted child sex offender Jeffrey Epstein.

Global Counsel, which Mandelson co-founded in 2010, said on Friday it had ceased trading and laid off staff in the UK.

The London-based company employs around 100 people, the majority of whom are based in the UK. It also has employees in Berlin, Brussels, Doha and Singapore.

Interpath administrators said Global Counsel had no choice but to enter administration after some of its clients cut ties with the company, despite efforts to distance itself from Mandelson and fellow co-founder Benjamin Wegg-Prosser.

The crisis hit Global Counsel after it emerged that Mandelson had sought Epstein’s advice on setting up the business in 2010, shortly after leaving office as Labor lost the general election.

Interpath managing director and joint administrator Will Wright said on Friday: “While Global Counsel has grown over the last 15 years to become one of the UK’s leading PR consultancies, the rapid and sudden loss of clients in recent weeks has had a tremendous impact on the business.

“We will now examine the company’s assets and liabilities in detail and explore the best way to realize the company’s assets.”

Interpath added that its immediate focus will be on supporting staff in the UK.

Wegg-Prosser resigned as chief executive officer earlier this month.

Files released by the US Department of Justice showed that Wegg-Prosser met Epstein while he was under house arrest in New York and shared the company’s business plan.

Global Legal Counsel has been approached for comment.