The Can Associates boss claimed that the ex-Atomic Kitten star had chosen to move forward in life after parting from Mark Croft, Now reports.
Powell said: "When she split from her husband, I decided I would be able to help her because she had finally decided she wanted to do something with her life.
"She was a lost soul. She had no close friends - she was like a drowning person in a pool."
She added: "Every time we get her out to premieres or functions, we make sure she looks amazing. She's got a much healthier lifestyle. Her skin looks good and her hair looks amazing."
Powell recently revealed that Katona had signed a three-year deal with ITV.
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