Kerry Katona being sued for thousands by sacked nanny

Kerry Katona is being sued by the sacked nanny who took care of her kids while she spent days on drug benders.

The bankrupt reality TV star fired Gemma Story just days after parting ways from hubby Mark Croft in March - insisting she couldn't trust her because she was dating his brother Stuart.

Now, Gemma, 26, is claiming 12,000 pounds compensation for loss of earnings and damage to her feelings.

"Kerry's offered a couple of grand but it's been rejected," News of the World quoted a friend of Katona as saying.

"She's going to have to rethink it though because the last thing she needs is another legal fight. She's already in a custody battle with Mark over their kids Heidi and Max," the friend added.