SOME €500,000 in cash was discovered in a safe in the basement of a controversial 'head shop' which was destroyed in a fire on Friday morning, it has emerged.

Firemen made the discovery when they were dispatched to try and keep the blaze under control. The fire led to the closure of Capel Steet until tomorrow.

The owner of Nirvana, the store that sells so-called "legal highs", has claimed the blaze was started maliciously and he is now fearful for the rest of his businesses. Gardai are currently in possession of the money, with the owner's consent.

Gardaí at the Bridewell are investigating the cause of the incident which de­stroyed the shop as well as the 'Utopia' sex shop beside it and a souvenir shop on the other side.

Jim Bellamy, who owns the Nirvana store as well as other 'head shops' in Dublin, said he had been targeted following the debate over the sale of legal highs in recent weeks.

Senior gardaí are aware of a "level of aggression" directed at businesspeople who run these stores by drug dealers, as the trade of illegal drugs has been adversely affected.

Five units of the Dublin Fire Brigade attended the fire including units from Tara Street, Phibsborough and North Strand stations. Initally there were fears the fire might spread to other buildings but firefighters were able to bring the blaze under control at about 11am. It wasn't fully extinguished until about 5pm.

There are no reports of anyone being injured al­though a number of residents living in nearby flats were evacuated. Throughout much of the day large plumes of smoke billowed out onto neighbouring streets and onto the quays.

Dublin Fire Brigade said the three shops would have to be demolished.