Car crash Kerry Katona's facing the abyss after falling out with the woman who engineered her comeback: CAN Associates über-agent Claire Powell.

CAN signed Kerry, 30, in March 2010 when she was at rock bottom and Claire insisted she give up drugs, ease up on the boozing and stay away from her ex Mark Croft, 40.

But Kerry went on a massive alcohol binge while in Marbella recently with Mel B's sister Danielle Brown.

‘Her speech was slurred and she was gurning,' says a fellow partygoer.

‘I know she has bipolar disorder, but I haven't seen her look this bad for a long time.'

The final straw appears to have occurred when Kerry was expected to attend a 21st birthday bash for fellow CAN client Amy Childs.

Instead, she went on a six-hour bender and ended up sat in a luggage trolley in the lobby of London's posh May Fair hotel at 2am with her head in a bag.

‘She staggered into the hotel bar already hammered but she still carried on drinking,' reveals Now's eyewitness.

‘She was swearing loudly and making a real show of herself.'

Kerry has denied she was dumped by CAN and that she was 'bladdered' on the night of Amy's party.

'I was out with my therapist...I only had a few glasses of champagne,' she says.

'With my head in my bag it looked like I was being sick, but I was honestly just looking for my ticket.'