Peaches Geldof has been axed from her six-figure deal with underwear brand Ultimo following claims about her private life.
The company said it had "no option but to terminate her contract" after deciding she was no longer a "positive" role model.
Ultimo said it would be removing visuals of the 21-year-old, who was appointed in May last year, from all shops and window displays.
It follows claims the daughter of Bob Geldof had a heroin-fuelled one night stand.
Several photographs from the night were published on the internet last week.
Her lawyer has strongly denied allegations of drug-taking saying she had "consumed alcohol".
Geldof said she was "disappointed" Ultimo had decided not to extend her contract "based on a wildly exaggerated account of a night in Los Angeles five months ago."
She added: "Whilst I vehemently deny parts of that account, I understand Ultimo's decision."
Michelle Mone, the founder of the brand, said: "We've given this a lot of thought, but there's a point where a business must stick to its principles and as a brand that targets young women, we feel it is impossible for Peaches to continue to work with us as the face of Miss Ultimo lingerie."
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