An early morning fire has gutted a downtown Kitchener business and damaged several adjoining buildings.

The fire started around 3 a.m. at 26 King Street East, which houses the Stag Shop on the lower floor and residential units on the top two floors.

When firefighters arrived on scene the top floors of the building were engulfed in flames. Area businesses and residents were evacuated.

King St. East, between Queen and Frederick Streets, remains closed as crews continue to try and stabilize the badly damaged building.

"There was some damage done to the façade so we're just trying to make that safe so we can open up some of the surrounding roads," said Tom Ruggle, Chief Fire Prevention Officer for Kitchener.

The cause of the fire is not yet known. The Ontario Fire Marshall has been called in to investigate.