Organisers of the Miss Great Britain pageant decided to strip Zara of her 2015/016 title because of her actions on the ITV2 dating show. Viewers watched Zara enjoy an overnight date with newcomer Alex Bowen, later confessing to having sex with him on his first night in the villa.
Following her confession, Zara expressed her regret at doing the deed with Alex, and told her fellow islanders she was "disappointed and annoyed" with herself, as it's not something she would usually do.
ITV has now confirmed that Zara has been informed of the organisers' decision off camera and she has chosen to remain on the show.
They released a statement that read: "Zara was informed of the news off camera this morning. She is now back in the villa and has chosen to remain in the show."
Explaining their decision to "dethrone" Zara, Miss GB organisers have said: "Following recent actions within the ITV2 show Love Island, it was with deep regret that we, the Miss Great Britain Organisation, have to announce that Zara Holland has formally been de-crowned as Miss Great Britain 2015/16.
"As an organisation we have not taken this decision lightly, we are close to all of our winners and wherever possible stand by them during their reign. That said, we feel we have no choice but to make this decision under the current circumstances.
"Although Miss Great Britain is the oldest pageant system in the UK, we pride ourselves on promoting the positivity of pageants in modern society and this includes the promotion of a strong, positive female role model in our winners.
"The feedback we have received from pageant insiders and members of the general public is such that we cannot promote Zara as a positive role model moving forward.
"We wholly understand that everyone makes mistakes, but Zara, as an ambassador for Miss Great Britain, simply did not uphold the responsibility expected of the title.
"We will meet with Zara upon her return to the UK to fully explain our decision and wish her the very best going forward."
Their statement was posted to Miss Great Britain's official Twitter, alongside a message that read: "To be clear we have no problem at all with sex - it is perfectly natural. We simply can't condone what happened on national TV."
The current title has now been passed to runner-up Deone Robertson.
Following the news, Caroline Flack was quick to speak out in support of Zara and questioned: "What even is 'Miss GB'? Are we living in the dark ages?"
Caroline added: "Feel even more sorry for Zara now she's been decrowned. She's a very sweet girl." She also re-tweeted a fan that had said: "Surely the 'role model' should be how Miss GB handles her mistakes. Not to be punished for making them."
Sam Reece, meanwhile, claimed it was unfair that Zara wasn't told about losing her title, before the decision was made public. He tweeted: "I think it's very wrong they have issued that statement and not even told Zara first! Poor girl."
Sam had many Twitter users agreeing with him, while others argued whether the "right decision" had been made. Others, meanwhile, questioned whether Mr Great Britain would receive the same treatment Zara has had.
One user commented: "personally i don't think that a man voted 'Mr Great Britain' would have the title taken away for having sex so i don't agree with it."
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