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Goldfingers has been closed for a number of years, but firefighters were called to extinguish a blaze there just after midnight.
Both King and Londsdale streets are closed and peak hour is approaching.
No one was injured in the fire.
Police are investigating the suspicious blaze, with a crime scene set up at the intersection.
Commuters have been warned there will be major delays “for some time”.
Motorists are advised to allow extra travel time and use Spencer Street as an alternative.