The Carphone Warehouse has suspended its sponsorship of 'Celebrity Big Brother' as a result of the race row.
The company ordered Channel 4 to remove its name and branding from the programme with immediate effect.
The move came after last night's episode saw an escalation of alleged racist bullying directed at Bollywood star Shilpa Shetty.
According to news agency PA, Carphone Warehouse chief executive Charles Dunstone said: "Our concern has rapidly mounted about the broadcast behaviour of individuals within the Big Brother house.
"We are totally against all forms of racism and bullying and indeed this behaviour is entirely at odds with the brand values of The Carphone Warehouse.
"As a result, we feel that as long as this continues, we are unable to associate our brand with the programme.”
It is also reported that The Perfume Shop in the UK has decided to withdraw sales of Jade's perfume from its shelves following the controversy.
