Nightly News   |  June 26, 2013

Paula Deen dropped by Home Depot, Wal-Mart

Following her teary interview on the TODAY show Wednesday, three more companies severed their relationships with Paula Deen: Home Depot, Wal-Mart and Caesars Entertainment. Earlier this week, the Food Network and Smithfield foods also ended partnerships with the celebrity chef. NBC’s Katy Tur reports.

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This content comes from Closed Captioning that was broadcast along with this program.

>>> as we said, new fallout in the ongoing saga involving paula deen . a former employee who is white, sued her for discrimination. in a deposition, deen admitted to using a racial slur . after a no-show, she sat down with matt lauer on "today." our report tonight from katy tur.

>> reporter: almost a week after she called in sick for her "today" show appearance, it was a contrite paula deen that sat down for an interview with matt lauer .

>> there were hurtful lies said about me.

>> reporter: the self-proclaimed queen of southern cooking tried to stir up damage control after admitting she used a racial slur in the past.

>> i'll ask you bluntly. are you a racist?

>> no. no i'm not.

>> so the fact that you were asked in that deposition whether you had used the "n" word on other occasions, probably, or of course are inaccurate?

>> no. i answered the question truthfully.

>> reporter: at her restaurant in savannah, her fans offered support.

>> i thought was a sincere apology.

>> we all say things that we don't mean.

>> reporter: deen's business is suffering. she has lost business with food network , home depot , smithfield foods , and walmart.

>> when you deal with a racial issue in this country, it makes sponsors very afraid, it makes businesses run.

>> reporter: also in jeopardy, her cookbooks many multiple restaurants, merchandise, and endorsement deals. experts say it's all at risk.

>> even if you don't care about food or paula deen , a great case study in how words can come back and haunt successful people.

>> i have apologized. i would never -- never, and i can truly say in my life, i have never with any intention hurt anybody on purpose. i is what i is. and i'm not changing.

>> reporter: katy tur, nbc news, new york.