NAPPANEE — Two men arrested in connection with a fire that destroyed a business and the apartments above it Saturday did know people who lived in the apartments, according to Nappanee Police Chief Mike Anglin.

The fire is still under investigation, Anglin said, so he didn’t want to release too much information.

Detective Fred Sumpter, from the Indiana Office of Homeland Security, said investigators believe the fire started on the second floor of the building where the apartments are located.

Joseph McCall and Kimbert Crafton, both 22 and both of Nappanee, were arrested Sunday on preliminary charges of arson.

Graber’s Carpet Studio on North Main Street and the apartments above it were destroyed, and John’s Butcher Shop and the apartments above it were damaged by smoke and water, according to fire officials.

Investigators were in the process of excavating the building looking for evidence Monday morning.

Anglin said his department got information from "several different people" that led to the arrests.

"It was good police work," he said. "The guys followed up on tips."

The blaze was a second blow to a town where buildings and homes were damaged by a tornado in October.

"We’re ready for a break," Anglin said.

Mayor Larry Thompson said firefighters had thawed out from a freezing day fighting the fire Saturday. The fire was reported about 6:30 a.m.

"They’re a pretty tough bunch," he said.