Supermodel Kate Moss lost advertising contract with fashion store H&M, because of the drugs allegations.

Moss, 31, was photographed a few days ago by Daily Mirror journalists snorting a line of the class A drug on the back of a CD cover in the studio where Babyshambles were recording their album.

Moss apologized to H&M bossed, acknowledging that tabloid allegations about her drug use are true and promising in writing to obey the company policy that models be "healthy, wholesome and sound'.

And it appears that, for the moment, Moss was forgiven, especially after H&M statement. But, after days of discussions, the company canceled the contract, arguing that most of their clients are young people, and any association with drugs is damaging the chain's image.

"H&M will cancel the planned advertising campaign with model Kate Moss,'' the company said today in an e-mailed statement. "H&M is strongly against drugs and for many years has actively supported the drug preventing organization Mentor Foundation".

"After having evaluated the situation H&M canceled the campaign because it would be inconsistent with H&M's clear dissociation of drugs", Asarnoj told Bloomberg News in an interview. "H&M didn't want there to be any doubt", Asarnoj said.

Moss, the star of the H&M autumn-winter collection designed by Stella McCartney, and the face of Burberry, Christian Dior, Rimmel, H Stern and Chanel, earns an estimated yearly income of $7.2 million.