One of Oxfordshire's best-known hospices, which cares for hundreds of dying people a year, could lose up to £60,000 after arsonists torched a Witney charity shop.

The Sobell House hospice store, which raises money for palliative care at Sobell House in Headington, Oxford, was wrecked when fire swept through the building.

Firefighters and police believe the blaze was caused by arsonists setting fire to a bag of donated clothing left outside the store.

Thirty-five firefighters from five Oxfordshire stations tackled the blaze into the early hours of yesterday, after staff at nearby Nortons bar spotted smoke and flames coming from the shop just after 11pm on Tuesday.

Flames spread within minutes, engulfing the ground-floor shop, first-floor premises occupied by Gifford engineering consultancy and neighbouring Figments gift store. No-one was injured.

Police cordoned off the area in Langdale Court yesterday and both shops remained closed as the hunt for the arsonists got under way. CID officers are analysing CCTV footage from the area and have appealed for anyone with information to come forward.

Figments suffered less serious fire damage to its shopfront, but the roof was badly damaged and the store will have to stay shut until repair work is carried out.

Det Sgt Howard Berry, of Witney CID, said: "Although no-one was injured, every fire endangers a life. It was a reckless and dangerous thing to do and caused thousands of pounds worth of damage."

Sobell House chief executive Richard Berry said the shop raised thousands of pounds for the hospice every year and initial estimates suggested closure of the Witney store could result in losses of up to £60,000. He said: "The money that will be lost almost equates to the provision of one much-needed bed, and that's very sad. We now desperately appeal for help, perhaps from a business in the town, in finding some space so that we can continue running the shop on a temporary basis."

Mr Berry said it was particularly sad as the shop, which opened in 1993 and raises funds by selling donated secondhand items, was refurbished six months ago.

Kevin Rose and Colin Brown, owners of The Laughing Stock joke shop, said they had been concerned about people leaving items outside the charity store for some time.

Mr Rose said: "There was a sign asking people not to do it but it was ignored. We were forever moving bags it was a disaster waiting to happen."

The incident comes a week after arsonists struck at Witney's former Springfield School building in Moorland Close. Anyone with information should call Det Sgt Berry on 08458 505505, Crimestoppers on 0800 555111. Anyone who can help the charity can call 01865 857007.