Kerry KatonaThe Sun is reporting that Kerry Katona has run out of money - and demonstrated her lack of cash by holding a party to celebrate her engagement to car-driver Mark Croft in a small function room at the local Best Western hotel rather than a more lavish celebrity haunt.

“People think I’ve got loads of money. I might have a few pairs of Gina shoes but I’m skint,” Kerry said.

Kerry lived in a £1.75million home in Dublin when she was married to Brian McFadden of Westlife but has now moved to a much smaller house in her hometown of Warrington in order to be closer to her mum, Susan.

Since quitting Atomic Kitten, Kerry has appeared on a number of television shows such as I’m a Celebrity, in adverts and is barely out of the gossip columns - but apparently her work has dried up after revelations of cocaine abuse and depression.

Even Kerry’s dress for the party betrayed her need for a more frugal lifestyle: “It was £12.99 from the market,” she revealed, “but it will do, won’t it?”