A SPORTS retailer has criticised an “irresponsible” business group for purveying fake news in a row over bosses’ pay.

Sports Direct says Pensions & Investment Research Consultants (PIRC) has skewed figures on wage packets in a “reckless” attempt to tarnish the company’s reputation.

According to a PIRC report, Sports Direct, founded by Newcastle United owner Mike Ashley, has the secondhighest ratio of chief executive- to-average employee pay - 400:1 - in the FTSE 350.

However, the business says the claims are incorrect, with bosses confirming they will write to the shareholder lobby group to express their disappointment.

Referring to PIRC’s report, a spokesman for the business, which has stores in Darlington, Bishop Auckland, Durham City and Catterick Garrison, North Yorkshire, said the claims were simply untrue.

He added: “This is fake news that appears to have been either deliberately or recklessly circulated by an irresponsible organisation.

“We have contacted PIRC to request a copy of the report and we will be writing to them to express our disappointment.

“It is incorrect to state Sports Direct has the secondhighest ratio of chief executive- to-average employee pay.”

The spokesman added the data used in the study was incorrect since it was based on a bonus entitlement accrued by Mr Forsey that was never paid out.

He said the true ratio over 2012 to 2015, had it paid out, would have been “closer to 9:1”.

The fall-out adds further turbulence to Sports Direct’s operations.

Officials last week admitted the devaluation of the euro against the dollar will affect its gross margin, while the business previously suffered a tumble in half-year profits following the fall in sterling after the Brexit vote.

Mr Ashley has also been forced to come out fighting after a number of shareholders voted against the company’s chairman Keith Hellawell and chief executive Dave Forsey left his role.

Last week, Mr Ashley revealed plans to appoint an employees’ representative, who will attend board meetings, to ease tensions heightened by MP claims he was overseeing “Victorian” working conditions.

Sports Direct is also having to plot a course to navigate choppy currency waters, with bosses admitting fluctuations in exchange rates, particularly the devaluation of the euro, will knock its gross margin.

The business’ UK stores are complemented by operations across Europe, through outlets in Austria and the Baltic states, and a fall in the euro is expected to raise import costs since the retailer buys goods in dollars.

However, Mr Ashley has maintained the business remains well-positioned to become the “Selfridges of sports retail”.

He added: “Our UK sports retail business continues to be the engine of Sports Direct, but our results have been affected by the significant deterioration in exchange rates, and assessment of our risk relating to stock levels and European stores performance.

“We are changing our retail channels in the UK and continue to progress towards our medium to long-term goal of becoming the Selfridges of sports retail.”