Paula Deen N-Word Scandal

If you're a pro dancer on "Dancing With the Stars" and find yourself partnered with a disgraced celeb like Paula Deen ... that's too damn bad ... producers will FORCE you to rumba no matter how much you hate them.

Mark Ballas laid it all out for us on the streets of Hollywood Saturday. Our photog asked him, IF Paula was chosen for the show ... would he take issue cha-cha-cha-ing with her, in light of her n-word scandal?

Mark tells us ... he has NO SAY in the matter whatsoever. Meaning, even if you loathe your celeb ... or find their use of racial slurs questionable ... you better suck it up. Mark explains why.

Which reminds us ...

A lot happened this week ... another Kanye attack, a racist attack against Oprah by a jealous actress and a venomous reaction to a magazine cover. So we gotta ask ...

Video of Paula Deen openly admitting to using the n-word will never see the light of day ... so ruled the judge in the $1.2 million lawsuit filed by one of Paula's ex-employees, who accused Paula of promoting a racist and sexist work environment.

You'll recall, the video deposition -- in which Paula says "yes of course" she used the n-word in the past -- precipitated her epic self-destruction, with scores of business partners ducking for cover and costing her millions.

We're told the video is "colorful," but you'll probably never see it ... at least if the judge has his way.

Deen was obviously terrified the employee would leak the deposition video to the media ... so last week, she filed docs asking the judge to block its release.

The FBI arrested a man in New York this morning after he allegedly tried to extort $250,000 from Paula Deen ... claiming he would release "true and damning" statements made by Deen unless she paid up.

According to a federal criminal complaint filed in the Southern District of Georgia on June 24, Deen's attorney went to the FBI after Deen received an email and follow up phone call from a man named Thomas Paculis.

The complaint claims Paculis threatened to go to the media with information he claimed would bring hardship and financial ruin to Deen.

According to the FBI, Paculis' email to Deen's attorney read, "I am about to go public with statements refuting your clients statements about using the 'N' word in her business practices at Lady and Son's ... The statements are true and damning enough that the case for Jackson will be won on it's merit alone."

The email went on to say there is a price for such information and urged Deen's attorney to contact him.

The revelation that Deen had used the N-word, which came about from a leaked deposition she gave as part of a lawsuit against her, came to light just days before.

Paula Deen is finally on the other end of a severed business relationship ... she's cutting ties with her agent following the recent fallout from her admission to using the N-word.

Deen's rep, Elana Weiss, said in a statement that Deen "has separated from" New York agent Barry Weiner.

Weiss went on to say that Deen and her family "thank him for the tireless effort and dedication over the many years."

Busy week, with lots of alleged bigotry front and center -- from Alec Baldwin's Twitter rant, to Paula Deen's Titanic-like career plunge. So we gotta ask ...

Disgraced chef Paula Deen needs a job ... and she's a mom ... so the good people who run a MILF-based porn site put 2-and-2 together and have offered her a SIX-FIGURE GIG.

A website called PureMature.com fired off a letter this week ... offering Paula a place in their company ... in light of her N-word controversy, which has lost her MILLIONS in sponsorships.

In the letter, PM starts by explaining to Paula she's a MILF -- a hot mom over the age of 65 who men would like to (you know). It continues with the job offer adding, "Full figured or thin, arthritic or diabetic -- you embody our perfect spokesperson."

As for compensation, PureMature says it's willing to offer her "6 figures for very little work" ... and NO nudity is required. Phew.

The demolition derby known as Paula Deen's empire rolls on -- she's just been dropped by one of her publishers, which says it will no longer release her next project ... which was expected to be a best seller.

In a statement released Friday, Ballantine Books announced it has cancelled the publication of "Paula Deen's New Testament: 250 Favorite Recipes, All Lightened Up".

But get this ... even though the book wasn't set to come out until October, it's already #1 on Amazon with pre-order sales.

Ballantine adds its name to the long list of companies abandoning ship in light of Deen's n-word controversy ... The Food Network, QVC, JCPenny, and Smithfield Hams, etc ...

Paula Deen's officially the least popular kid on the playground ... JCPenney just severed ties with the celebrity chef in the wake of her n-word scandal.

A rep for the department store released a statement today, saying, "We can confirm that jcpenney has decided to discontinue selling Paula Deen branded merchandise."

JCP had sold Deen-brand kitchen products ... which is good news for Martha Stewart.

Paula Deen has filed legal docs in the lawsuit that sent her career into a free fall -- claiming the woman who's suing her is trumping up racial allegations and now Paula is out for blood.

Lisa Jackson -- who claims she was forced to quit her job as manager of Uncle Bubba's Seafood and Oyster House -- is asking for damages based on racial harassment, claiming she's African-American adjacent. As for Jackson's proof she's got African-American ties, she points to her partner's biracial niece, whom Jackson claims is half Black.

According to Paula's new legal docs -- obtained by TMZ -- Jackson's niece is NOT Black at all ... not even a little. Paula says Jackson's partner has now admitted the niece is Hispanic -- NOT Black.

And Paula's especially pissed that Jackson alleged in her lawsuit that Paula used the N-word in connection with Bubba's wedding, yet has never offered a shred of proof that the word was used.

Paula Deen can't apologize enough to stop the bleeding -- Kmart and Sears are now cutting ties with her in the wake of the n-word controversy ... TMZ has learned.

Sears Holdings -- owner of Sears and Kmart stores -- tells us, "After careful consideration of all available information, we have made the decision to phase out all products tied to [Paula Deen's] brand."

But the retail giants -- which carry Deen's cookware and dishware lines -- seem to be guilty of a little fence-sitting, because they added ... "We will continue to evaluate the situation."

Yesterday Home Depot, Target, and QVC also jumped ship ... following the Food Network's lead.

What's that saying about a pound of flesh?

After waiting around to see which way the wind blew ... QVC -- like a lemming -- followed the rest of Paula Deen's partners and dropped the chef in the wake of the n-word scandal.

Initially, QVC refused to take a stand -- saying they were closely monitoring the situation.

Now, after just about every company connected to Deen jumped ship ... QVC has sheepishly made its move ... announcing Paula will not appear on any upcoming broadcasts ... for now.

In fact, the head of QVC released a statement saying, "Some of you may wonder whether this is a 'forever' decision – whether we are simply ending our association with Paula. We don’t think that’s how relationships work. People deserve second chances. And we always strive to do the right thing." One question: Huh?

For her part, Paula released her own statement regarding the QVC split, saying, "As you know, I have some important things to work on right now, both personally and professionally. And so we’ve agreed that it’s best for me to step back from QVC and focus on setting things right."

Who's next?

Paula Deen's in the crosshairs at Target -- with the retail chain telling TMZ they will NOT continue to do business with the chef in the wake of her N-word scandal.

FYI -- Target offers a variety of Paula Deen cookware ... including pots, pans and skillets.

A rep for Target tells TMZ ... "We have made a decision to phase out the Paula Deen merchandise in our stores as well as on Target.com. Once the merchandise is sold out, we will not be replenishing inventory."

Meanwhile, Puma has yet to drop Aaron Hernandez. Just sayin ...

Paula Deen's situation is so bad ... even diabetes is distancing itself from the crazy cook.

TMZ has learned ... Paula and diabetes drug maker Novo Nordisk have parted ways ... at least for now. Deen -- who has Type 2 diabetes -- was a spokesperson for the company's campaign, "Diabetes in a New Light." Paula was singing the virtue of Novo Nordisk's diabetes drug Victoza, which she takes ... she also ironically was promoting "lifestyle changes."

A Novo Nordisk spokesperson tells TMZ ... they have mutually agreed with Paula to part ways for now, "while she takes time to focus her attention where it is needed."

Another one bites the dust ... Paula Deen has just been dropped by Walmart.

The retail giant just released a statement, saying, "We are ending our relationship with Paula Deen Enterprises and we will not place new orders beyond those already committed."

Walmart is Paula's latest business partner to sever ties with the celebrity chef in the wake of her n-word scandal ... a list that includes the Food Network, the Caesars casino company, and the ham company Smithfield.

Deen appeared on "Today" this morning, offering a tearful apology -- saying, "If there's anyone out there that has never said something that they wish they could take back ... please pick up that stone and throw it so hard at my head that it kills me."

Et tu, Caesars?

The casino company just announced it will be KILLING its professional relationship with Paula Deen -- and will close all 4 of her restaurants that operate on its properties.

FYI -- Deen has restaurants in Harrah's Tunica near Memphis, Harrah's Joliet near Chicago, Harrah's Cherokee in North Carolina ... and a buffet at Horseshoe Southern Indiana.

But fear not hungry gamblers, Caesars says it intends to rebrand Paula's restaurants and reopen them in a couple of months.

Caesars says the move is in the company's "best interest" following the whole N-word scandal.