Singer Antonia Jenae claims the incident happened on Mr Branson's island in 2015
Virgin founder Richard Branson has said he has "no recollection" of an alleged sexual harrassment incident at his Caribbean home.
The billionaire's response follows a claim that he put his face in a singer's cleavage and mimicked the sound of a motorboat.
Antonia Jenae, a 44-year-old singer from Florida, told The Sun she was invited to Mr Branson’s home in the Caribbean along with singer Joss Stone in June 2010.
"We were by the bar and he was saying bye to everyone," Ms Jenae told the newspaper.
"He came up to me and put his face on my breasts. He went 'brrrrrr' and just walked away," she explained.
The US singer claims to have captured her shock after the alleged incident on video with Stone, who was an alleged witness.
A representative for Joss Stone has refused to comment, but a spokeswoman for Virgin Management has issued a statement saying that "everyone appeared to enjoy their time on the island."
"Richard has no recollection of this matter and neither do his family and friends, who were with him on the island at the time," she said.
"There would never have been any intention to offend or make anyone feel uncomfortable in any way and Richard apologises if anyone felt that way during their time on the island."
Virgin also issued a statement from Stone's father, Richard Stoker, who was on the island at the time.
In it, he said: "Joss and the group had a wonderful afternoon on Necker Island, everybody entered into the party spirit and it was wonderful getting to know Richard and his family."
Ms Jenae also claims Sir Richard "tried to get me to show him my boobs," which she refused.
She told the paper she decided to speak out following the scandal that has engulfed Hollywood.