'Fashion Police' Staffers Giuliana and Kelly ... Are Ruining Joan Rivers' Legacy

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Giuliana Rancic and Kelly Osbourne's battle at "Fashion Police" is tearing down everything Joan Rivers built -- at least that's how show staffers feel ... TMZ has learned.

Sources close to the production tell us producers fear the uproar over the Zendaya joke will cause Giuliana to be more silent on the show -- because she'll be worried about further backlash.

We're told producers are worried the other show hosts will follow suit ... and it will no longer be the sassy show full of sarcastic humor that it used to be. They also wish both women had chilled after the on air apology ... because things would have blown over.

We're told Melissa Rivers is now doing everything in her power behind the scenes to keep her mom's legacy alive.

Stay tuned.

Calvin Klein We Never Said Lupita's Oscar Dress was Real

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It's turning into the greatest Oscar story in years. Lupita Nyong'o's stolen Oscar dress -- which was reportedly worth between $150,000 and $10 MILLION -- appears to be all smoke and mirrors.

TMZ broke the story ... the thief called us Friday afternoon and said he took 2 of the pearls down to the Garment District in L.A. and learned they were fake. That's when he returned the dress to the hotel.

Law enforcement sources tell us ... Calvin Klein's people never told them if the pearls were real or fake. We're told the only person who represented the pearls as real and valued the dress at $150K was Lupita's stylist.

A source directly connected with the Women's Creative Director of Calvin Klein, Francisco Costa, put it this way to TMZ, "Did anyone ever say they were real from Calvin Klein? I always assumed everyone knew they were fake, but I guess not."

The source awesomely adds, "Do they really make dresses out of real jewels since Cleopatra died?"

Chad Johnson Hire Me On 'Fashion Police' Yes, I'm Serious

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With Kelly Osbourne quitting "Fashion Police" there's another celebrity making a run for her chair -- Chad Johnson ... who tells TMZ Sports he honestly believes he's the perfect guy for the job.

"Who better when it comes to fashion than me? I rarely wear labels or high-end clothing and kill it," the ex-NFL star says.

We broke the story Kelly walked from the show on Friday ... after tension had been building on the set for weeks.

One source close to Chad tells us, "He REALLY wants it."

So far, producers say they haven't made any decisions on Kelly's replacement ... but hey, stranger things have happened.

Stay tuned ...

Lupita Nyong'o Dress Returned To Scene of the Crime!

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Lupita Nyong'o's Oscar gown was returned to The London West Hollywood Friday afternoon where it was taken 2 days earlier ... and the thief called TMZ to tell us where it could be found and added it was a worthless fake.

A guy called us at around 2:30 PM Friday and said he had taken the dress from Lupita's hotel room after he noticed the door was ajar. He said he and others took 2 pearls off of the dress and took them to the garment district in downtown L.A. ... where they were told they weren't real.

The thief says he decided to take the dress back to the London in a garment bag that was inside a trash bag that he deposited in a 2nd floor bathroom adjacent to a fitness center.

We contacted the L.A. County Sheriff's Dept. and gave them the info. They went over to the hotel and retrieved the bag and they found a garment bag with the dress inside.

Law enforcement says they were told the Calvin Klein dress was worth $150K, but the thief says it's almost worthless.

The thief told us he returned the bag and called us because he wanted the world to know "Hollywood's fake bulls**t."

Kelly Osbourne Quits 'Fashion Police' She Just Had It

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Kelly Osbourne quit "Fashion Police" ... TMZ has learned.

Multiple sources connected with the show tell us ... producers and Kelly were at odds even before the Giuliana Rancic showdown, where Kelly threatened to quit unless Giuliana apologized over her comments about Zendaya on the red carpet at the Oscars.

We're told the tension started over the first episode the cast taped without Joan Rivers. Kelly was unhappy with the way the show was being produced. Producers, we're told, were "up to here" with Kelly so the handwriting was on the wall.

Sources tells us Kelly walked Friday.

Zendaya I'm So Over Dreadlocks And the Whole Giuliana Thing

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Zendaya Coleman is locks free, but not 'cause she felt bullied by Giuliana Rancic ... it's because they're too damn tight.

The Disney star was in Hollywood Thursday night, walking arm in arm with her dad (who has locks), when a photog asked if she's still pissed at Giuliana for jumping to conclusions about her follicle choices on the Oscars red carpet.

It's clear Zendaya has buried the hatchet and she're ready to move on -- but also ... pretty interesting to see she's already ditched the very hairstyle that created all the fuss.

Lupita Nyong'o Dress Surveillance Cams So Bad Ray Rice Could Have Skated

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The now-famous $150,000 dress that was stolen from Lupita Nyong'o's West Hollywood hotel room is no closer to being found because TMZ has learned the surveillance video is a bust.

Law enforcement sources tell us detectives have reviewed video from The London West Hollywood and it shows nothing leading them to the thief.

A big problem ... the security cameras in the hotel are spotty and there was nothing trained on the area surrounding the door of Lupita's room.

One source put it this way ... "If Ray Rice did what he did at The London, he would have gotten away with it."

Cops are stumped as to how the dress was taken. One source says it was too "long and stiff" to wear with something over it. It could have been placed in a hamper or a bag ... they just don't know.

They also don't know if it was an inside job or if someone who had access to Lupita's room stole it.

What they do know is this ... it's definitely gone.

A photog got Lupita at JFK airport early Friday, but she was mum.

#TheDress Blue/Black, White/Gold Sales are Through the Roof!!!

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The company behind #TheDress has put the debate to bed -- it's blue and black -- and the hubbub has done wonders for its business ... thanks to the hashtag hysteria.

#TheDress phenomenon began after a woman posted a photo of her mother's dress for her wedding ... asking people to ID the color. From there ... EXPLOSION ... with the likes of Justin Bieber (blue and black), Kim Kardashian (white and gold), and Taylor Swift (blue and black) all weighing in.

A rep for the company that makes the dress, Roman Originals, tells TMZ the dress is blue and black, but it also comes in pink and black, white and black and red and black. There isn't a white and gold option yet ... but Roman is looking to add it to the line because of all the commotion.

As for business, Roman Originals says sales are up 347%.

And here you thought a few escaped llamas would be the weirdest thing to happen on the Internet this week.

Lupita Nyong'o $150K Pearl Oscar Dress ... STOLEN!!!!

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Lupita Nyong'o's now-famous Oscar dress -- adorned in pearls -- was stolen right out of her hotel room ... TMZ has learned.

Law enforcement sources tell TMZ ... the dress was taken out of Lupita's room at The London West Hollywood. The dress is made of pearls ... 6,000 white Akoya pearls. It's valued at $150,000.

Our sources say Lupita told cops it was taken from her room sometime between 8 AM and 9 PM Wednesday ... while she was gone.

We're told there is security footage that cops are looking at that could catch the culprit right in the act.

12:00 PM PT -- Sheriff's deputies were at The London Thursday morning. We know they were in the manager's office and we're told they have looked at security footage to determine if they can ID the culprit.

Elizabeth Taylor Family Jewels and Cash Held Hostage ... Liz's Trust Sues

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One of Elizabeth Taylor's iconic jewelry pieces fetched almost $9 million in an auction -- but the buyer backed out, and now Liz's trust is suing famed auction house Christie's Inc. for screwing up the deal.

Lizzie's Taj Mahal diamond necklace -- a gift from Richard Burton -- was one of the items hawked during Christie's 2011 auction ... which took in a whopping $156,756,576. Problem is ... the guy who bid $8,818,500 for the necklace backed out because the massive heart-shaped diamond wasn't up to snuff for him.

Meanwhile, Christie's had already paid Taylor's trust for the necklace ... and when the guy backed out ... the auction house demanded the cash back. As you can imagine, they weren't in the giving mood. In fact, the Taylor trust is now suing Christie's.

According to the suit ... Christie's is holding hostage millions of dollars gained from the auction of other items -- including a Bulgari ring and a Valentino fur evening bag. The Bulgari alone sold for $2.9 million.

The Taylor trust says Christie's is strong-arming -- refusing to hand over cash from all the other items ... unless it gets back the Taj Mahal funds.

The Taylor trust wants the court to tell Christie's to go kick rocks.

A rep for Christie's says the suit "stems from Christie's seeking the return of a small portion of proceeds due to the cancelled sale of a single item from the 1,800 lot collection." The rep added they look forward to a "speedy resolution" on the matter.

Kid Rock Wears a Coat Made of Otter ... and Spite!

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Kid Rock is very proud of his otter skin jacket, not because it's warm and luxurious ... but because it's a big F-U to the animal activists ... including his ex, Pam Anderson.

Kid was at Uncle Jack's Steakhouse in New York City Tuesday night, celebrating the release of his new album, when he decided to brag about his coat ... completely unprompted.

It's clear he's very fond of the jacket -- which he had monogrammed with a ridiculous pun -- but the whole exchange seemed purposely orchestrated to irk his animal-loving former flame.

Even with Pam suddenly single, it seems the third ceremony between her and Kid will NOT be happening.

Kelly Osbourne Giuliana Better Make It Right With Zendaya ... Or I'll Quit!! [Update]

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Kelly Osbourne just dropped an ultimatum on Giuliana Rancic and their "Fashion Police" bosses -- issue a mea culpa for saying Zendaya smells like a hippie pot smoker ... or she'll quit the show.

Kelly is responding to the firestorm Giuliana sparked with a comment about the Disney star's Oscar look -- which included new dreadlocks. Rancic said she thought Zendaya must smell like patchouli oil or weed. Kathy Griffin joined in on the "weed" comment.

Kelly went off on a Twitter rant, saying ... "I'm giving everyone involved 24 hours to make it right or the world will hear how I really feel." She added she doesn't condone racism and is seriously questioning staying on the show.

Osbourne reminded fans she's friends with Zendaya -- who herself blasted Rancic for making such an "outrageously offensive" stereotypical comment.

It sounds like no one involved is buying Giuliana's claim her remarks "had NOTHING to do with race."

4:30 PM PT-- Looks like Kelly has pull ... Giuliana just apologized again -- this time on the air during "E! News."

Irina Shayk Half-Naked & Rebounding ... At Post-Oscars Bash

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Think Cristiano Ronaldo's kicking himself yet??

Here's recently single Sports Illustrated: Swimsuit Edition supermodel Irina Shayk ... showing off everything from her underboob to her side ass at the Vanity Fair party Sunday night in Hollywood.

The 29-year-old gave Ronaldo the boot last month after rumors began circulating that he was bangin' other chicks ... so she's very single and by the looks of things, very ready to mingle.

For the record, there were a ton of hot single dudes at the VF party -- including Orlando Bloom, Jared Leto and Common.

Happy rebounding.

Ray J Threatened by Fancy Watch Company ... We Hit it First!

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Ain't nobody got time for Ray J to sell knock-off designs of an extremely high-end watch -- especially the famous Swiss timepiece company he's allegedly ripping off.

Audemars Piguet watches are faves of LeBron James, Jay Z, and Arnold Schwarzenegger -- but the company's fired off a cease and desist letter to Ray J to block him from hawking what it calls a full rip-off of its Royal Oak watch.

AP says the watches have multiple similarities -- including hexagonal screws placed at the corners of an octagon face. The legal docs even include tweets from consumers calling out Ray J's watch as a "blatant ripoff."

By the way AP's piece sells for more than $25,000 ... and Ray's between $150 and $500.

Audemars gave Ray a deadline of February 3 to yank his watch, but Ray J's manager, David Weintraub, tells us he's pushing forward with the release.

Tick tock until the lawsuit.

Paris Hilton OK, My Giant Boobs Are an Illusion

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Paris Hilton's ENORMOUS boobs are fake, but not surgically fake.

Paris will not speak out publicly about her breasts, but we know the deal. Paris says privately she's had no surgery, no stem cell treatment, no artificial enhancements whatsoever, and she's annoyed people think she'd mess with her breasts.

So what is it? The new "Paris Hilton Push-Up Bra" ... and after meticulous research, our photo dept. analyzed Paris' boob pics -- and it appears she's a truth teller.

Nothing to see here folks ... except boobs.

NBA Star to Kanye: MAKE BIGGER SHOES I Need a Size 18!!

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NBA star JaVale McGee says size definitely matters when trying to cop some Yeezys ... telling TMZ Sports he can't style in the hottest shoe of 2015 ... because Kanye doesn't make a SIZE 18!!

The 7-footer was enjoying the beginning of the All-Star break at 1Oak in L.A. when we asked the notorious sneakerhead when we'd see him in the most talked about shoe in the world right now.

The answer? NEVER ... or at least until Mr. West and Adidas makes them in sizes that accommodate JaVale's gargantuan hooves ... which McGee says would cost A TON of cash for the material alone!

C'mon Kanye, look out for the (very, very, very) large brother.