Moss; the Daily Mirror cover
09/21/2005 at 12:30 PM EDT
Kate Moss has lost her big H&M Stores endorsement deal after allegations that the British supermodel took illegal drugs.
The Swedish-based company previously said that it would retain Moss's services despite photos published in the British tabloid the Daily Mirror allegedly showing her snorting cocaine with her former boyfriend Pete Doherty. Moss, 31, appears in the chain's advertisements for designer Stella McCartney's fall collection.
But there has been a change of heart. "H&M has decided to cancel the advertising campaign with model Kate Moss. H&M distances itself strongly from drugs and for several years has been actively engaged in drug prevention work with the Mentor Foundation," the company said in a statement.
"After examining the situation H&M decided that the campaign with Kate Moss is not compatible with H&M's clear rejection of drugs," the firm added.
Calls to Moss's London lawyer placed by The New York Times were not answered, the newspaper reports.
Earlier, H&M had maintained that Moss and the ad campaign would stay, after the model had apologized to the company's marketing chief, Jorge Andersson, in New York, reports Britain's Guardian newspaper.
Saying that Moss was "full of regret for her actions," an H&M spokeswoman told that paper last week: "She has assured us it will not happen again, and as a result we are willing to give her a second chance."
Moss, who is said to earn about $7.2 million a year for her ad work, also has deals with Burberry, Chanel and Dior, among other brands. Burberry's creative director Christopher Bailey told PEOPLE they plan to keep Moss on. "I'm sorry that Kate is going through hard times. She's part of our family, and we will be supporting her."
Chanel on the other hand said Wednesday they will not renew a contract with Moss.
"Kate Moss has a contract until the end of October," said Julie Le Blevec, spokeswoman for Chanel perfumes. "We are not planning to stop the advertisements before then."
Le Blevec added: "The contract was always going to end in October."
Meanwhile, British police are looking into the reports that Moss took illegal drugs, London's Scotland Yard told Reuters on Wednesday. "Assistant Commissioner Tarique Ghaffur has reviewed the matter and had asked officers from the specialist crime directive to look at reports as highlighted in a national newspaper," said a Yard spokeswoman.