Waiting for people to enter the lift, Shane reportedly said: "Hurry up! Last person in is a gay!"
The three members of S Club 7 who were in the lift - Tina Barrett, Jo O’Meara and Hannah Spearritt - clearly didn't appreciate the quip.
Jon Lee, one of the seven, came out as gay to the Gay Times in 2010. A representative for S Club 7 told BBC bosses they weren't prepared to take part in the CHildren in Need quiz alongside Shane, resulting in him being culled.
The Sun have reported a 'source' close to Shane has confirmed he made the comment, but denied it was meant to be offensive.
The source said: "The comments were clearly meant as a joke."
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Alfie Moon should've got his 'representative' to issue a statement saying he wouldn't take part in any charity stunt involving outspoken racist Jo O'Meara.
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