The damage caused by the fire in the Skeifan business district of Reykjavík on Sunday night is estimated to cost hundreds of millions of ISK, ruv.is reports.
The fire marks the third time a fire has broken out at a building at the address, Skeifan 11On October 29, 1975, the carpet store Persía, housed at the same location, burned to the ground, Morgunblaðið reports.
Women working at a local bread factory alerted police to the fire and firefighters were able to contain it within two hours. At that point the entire interior of the carpet store had, and the fire had also managed to get into a store room of an adjacent shop that sold spare parts for cars and machinery.
The following day a large portion of the roof collapsed in a spot where the head of the Reykjavík fire department had been standing just moments before. Disaster was narrowly avoided as many people had been in the building all day inspecting the damage.
The newest parts of the current building were constructed in 1983.
A fire also broke out in the building in 2008 but only minor damage occurred.