An Invercargill couple have lost “everything” and are rushing to Dunedin Hospital to see their grandson’s burns treated after an overnight blaze gutted their home and business.

The child, who is 10 years old, has received severe burns to his face, arms and legs after the blaze is understood to have sparked in his room.

Eight fire crews and a ground unit were called to the historic Pall Mall Arcade building on Dee St just before 1am.

Videos from the scene showed 1m-high flames streaming from the windows of the building, with noises like gunshots popping in the background.

Eight fire crews and a ground unit were called to the Pall Mall Arcade building on Dee St just before 1am. Photo / Richard Stone

The Herald understands the property in question, built in the 1860s, was a bookstore that belonged to a couple in their sixties.

At the time of the early morning incident, the couple had numerous family members staying with them in a separate dwelling above the store.

Amongst them was another younger couple and another man, also in his sixties.

Extended family of the couple involved told the Herald they understood the fire had started in the bedroom of the couple’s grandson.

One family member had been outside smoking and realised upon returning that smoke had spread across the building.

“So he went around and bashed down everyone’s doors,” a member of the extended family said.

The remains of the Dee St fire in Invercargill which left a 10-year-old severely burned. Photo / Richard Stone

The family understood at this stage the fire was sparked by an electrical fault and the child had to be dragged out of the bedroom.

“He’s in quite a serious condition,” the extended family member said.

“[The couple] have gone up to Dunedin because they’re better equipped than Invercargill to handle burns.”

Family said the couple involved are traumatised by the blaze which they said has left them with virtually nothing left to their name.

“It was their primary source of income, they’ve lost that and all their personal belongings, plus they don’t have contents insurance - so it’ll just be basic building insurance they can claim.”

In response, the family have launched a Givealittle page to help the couple rebuild their lives.

A Fire and Emergency spokesperson said the three-storey building was built in the 1860s. The fire was well-involved on both the first and second floors when firefighters arrived.

About six people were evacuated, with all of them treated for smoke inhalation.

One person also suffered superficial burns to their limbs, the spokesperson said.

- Nathan Morton is a Christchurch-based reporter with a focus on South Island news. He joined the Herald in 2022.