Kerry Katona's contract with Iceland is safe despite her disastrous TV appearance this week, the retailer has said.

A slurred, erratic interview on ITV1's This Morning on Wednesday saw Katona's name hitting the headlines after viewers called in expressing concern for her wellbeing.

But while presenter Philip Schofield criticised Katona's management for allowing her on the show, Iceland has stressed that the former Atomic Kitten star "remains under contract" for her advertising deal with the store.

A statement from the frozen food company said: "Kerry is dependent on medication for her bi-polar disorder and if this medication isn't taken at the right time it will result in her appearing disorientated and slurring her words.

"One more than one occasion we have had firsthand experience of this, and after a short period Kerry has been fit to resume her work, we were unaware of her appearance on This Morning and it is our opinion that Kerry should not have appeared on the programme."

The 28-year-old claimed her slurred speech on This Morning was due to having taken prescription drugs to help her sleep but Schofield denied any allegation that she had been 'ambushed' about her mental state.

"As a production team, we're a bit sad this morning," he told BBC Radio 1's Chris Moyles.

"I know that she walked down the corridor and said that we'd ambushed her in the interview.

"At no time were alcohol or drug issues going to be mentioned, because we've done that in the past. She ambushed herself by slurring her words.

"It's a shame that she feels that way because unfortunately she set herself up, or she was set up by the person who brought her in."

24/10/2008 15:02:53