Billowing smoke could be seen coming from the Nunavut Wellness Spa on Federal Road in Iqaluit late Monday morning.
Firefighters raced to the scene to combat the blaze.
A portion of the road was blocked off in front of the building and traffic in the area was redirected elsewhere in the city.
The fire at the local business, owned by Patience Simbada and Tatenda Chimhanda, was initially contained to the rear of the building, facing the Plateau Hill, but the flames quickly grew larger, according to an eyewitness, who preferred to remain anonymous.
The city issued an emergency announcement advising residents of the incident at 11:48 am. The situation was still unresolved as of 4:30 p.m.
