THREE youths, one believed to be just 12-years-old, have been arrested on suspicion of arson after fire swept through a Bolton mill today.

Several small blazes were started at Alec's Three Piece Suite warehouse based at Grecian Mill in Rigby Court, off Lever Street, shortly after 9.30am.

Witnesses saw three youths aged between 12 and 14 hanging around the area shortly before the fires were spotted.

The mill, which is used by several firms split into individual units, was evacuated as firefighters raced to the scene.

The three youths were arrested nearby and were due to be questioned by detectives this afternoon.

As officers probed the cause of the fire, a Bolton fire chief said the damage could have been much worse and lives could have been lost if the alarm had not been raised so quickly.

He also praised his fire crews for preventing the blaze spreading through the remainder of the mill.

The fire was spotted by residents of nearby Rigby Court. Ivan Goodram, aged 55, and his 22-year-old son Andrew saw smoke billowing from under a door.

They shouted to the employees who were working at the premises and in adjacent units.

Around 20 people were evacuated from the units, while Gary Cropper from a neighbouring business, Proffitts Furniture, rang the emergency services.

No one was injured in the incident.

Mr Ivan Goodram said: "I opened the door and the flames hit me in the face. I just started shouting and shouting to get everyone out.

"I knew there were people working inside and they had to get out."

Four fire engines from Bolton Central and Farnworth were sent to the scene and about 25 firefighters tackled the blaze.

They used a thermal imaging camera to check the blaze was completely extinguished.

The fire wrecked a two storey unit adjoining the mill itself.

Station Commander Brian Wiggans said: "When we arrived, there were several fires burning and flames shooting into the air from the ground and first floor.

"The building is old and the blaze could have spread very quickly. It was lucky the employees were alerted so soon."

Representatives of the firm next door, Naughton Electrics, were so thankful firefighters managed to stop the blaze from spreading to their business they presented them with a cheque for £50 for their benevolent fund.

The fire broke out as a joint police and fire service investigation was underway in a bid to catch the hoaxer who between 9.30pm and 11pm last night made four malicious calls to the fire service reporting fires at an address in Winchester Way.

In one call a hoaxer put on a fake tearful voice and reported a gas explosion, and there were also reports of a house fire in the street in the other calls.

At one point, three fire engines rushed to the area because of the serious nature of the call.

All the calls were traced to the same telephone box and each time firefighters were called to the same address. It is believed that the same person made all the calls but investigations are continuing.

Although firefighters suspected the calls were hoax they still had to attend each call out, to make sure it was not a real fire, leaving large patches of Bolton without any fire cover.

Leading Fireman Adrian Taylor said: "When we were out attending these calls we were leaving Bolton without fire cover."

A hoax call which results in three fire engines going to a non-existant fire costs around £1,000.

This figure is based on money paid to firefighters and the wear and tear on the appliances.

Anyone with information should call Bolton police on 0161 872 5050 or Crimestoppers on 0800 555 111.