The fabric dyeing factory has been operating in Ballarat since 1975.
John Bulace says his company’s production will have to stop and its 11 employees will have to be put on leave.
“In the short-term we’ll have to close down… we haven’t really determined how far we’ve got to go yet.
“I’m hopeful we can get it up and running again, I’m not getting any younger but for the sake of the employees I’d like to think we could get it going again.”
The company dyes clothing for dress manufacturers, fabric knitters and carpet producers.
Mr Bulace says it was just starting to recover after many of their clients moved off-shore.
“We’ve had good years, we’ve had lean years – at the moment it’s fairly lean but it was showing signs of improvement.
“We just hope we can pick up the pieces and start again.”
The Country Fire Authority is trying to determine the cause of the blaze.