Ouch!: Paula Dean Loses Sears & Kmart Endorsement Deals....THE SAME DAY!

TMZ Reports: 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