Peaches Geldof says she is "disappointed" she has been axed as the "face and body" of underwear brand Ultimo following claims about her private life.
In a statement the 21-year-old model and socialite said: "I am disappointed that Ultimo has decided not to extend my contract based on a wildly exaggerated account of a night in Los Angeles five months ago.
"Whilst I vehemently deny parts of that account, I understand Ultimo's decision."
The decision by the lingerie label comes after claims in the press which her lawyer has denied.
Jonathan Coad said in a statement: "The allegations that our client was carrying and injecting heroin are denied, our client having consumed alcohol with the other individual leading to the 'highs' described and portrayed in the photographs."
Peaches, Bob Geldof's second daughter, was appointed by the underwear company in May last year but bosses say it will now be removing her picture from all shops and window displays.
In a statement, a spokeswoman for Miss Ultimo lingerie said: "We have been in meetings all morning with regards to the stories that have surfaced over the weekend about Peaches and unfortunately we have no option but to terminate her contract."
Geldof added: "I have been proud to be the face of Miss Ultimo for the past year and wish the brand every success for the future."
