More than 50 firefighters were called to battle the blaze at Steve Humphreys Pallet and Case Makers in Higher Walton, near Bamber Bridge, at 10.10pm on Monday.

The business, based at Higher Walton Mill for 15 years, had more than 25,000 wooden pallets stored outside.

Firefighters from across Lancashire spent more than eight hours at the scene battling the flames and managed to stop it spreading to the building.

Police and the fire service are now investigating whether the fire was started deliberately.

Owner Steve Humphreys, who employs six staff, said: "Everything has gone. Morale is pretty low.

"It was a massive shock. I've never seen a bonfire as big as that.

"We are working to salvage what we can and it's just a case of getting back up and running."

Manager Steve Bamber said: "I just felt total shock and devastation.
"You're talking about a lot of money just gone up in flames."

The incident is believed to have started in the centre of the yard and quickly engulfed an area of 100sq m.

Fire engines were at the scene in Cann Bridge Street overnight.
Water was pumped from the nearby River Darwen to help put out the flames.

Watch manager Graham Knowles from Bamber Bridge fire station, said: "Someone had set fire to the pallets in the middle. They run right back to the River Darwen."

Crews spent Tuesday damping down to make sure the fire did not re-ignite.

The company hopes to be able to continue trading and is waiting for an assessment by insurers.