The Armadillo Cheadle store of Big Yellow Group PLC (LSE:BYG) suffered a major fire in the early hours of February 26.
The store on Earl Road was completely destroyed, the company said in a stock market statement.
It is unknown at this stage what caused the fire, which ripped through the storage company's premises. Greater Manchester Fire Brigade and police are investigating the cause, the company noted.
All 650 of Big Yellow's customers who had stored their personal belongings at the gutted storage unit have been contacted and will receive assistance with their insurance claims, the company said in a statement, adding, "This is a difficult time for all our affected customers and some of the possessions stored with us can never be replaced, and we are very saddened that this incident occurred."
As of September 30, 2021, the balance sheet value of the store was £3.3mln. The lease on the store has five years left on it. In addition to buildings all-risk insurance, the company said it had insurance coverage for the fitout and for four-year loss of income.
The fire was declared a major incident after 130 firefighters were called in to fight it. As reported by Cheshire Live, the fire that destroyed the self-storage warehouse in South Manchester appeared to have been started deliberately.
Manchester Evening News quoted a police statement as saying, "Detectives are now treating the fire as a deliberate ignition and an investigation is underway."