Fire departments from Hanover, Walkerton, Durham, Elmwood, and Neustadt were brought in to battle the blaze at Fabulous Fashions and the old Forum around 2:20 this morning.
Hanover and West Grey Police were also called to the scene as were Grey County Paramedics.
In a news release, Hanover Police Chief Chris Knoll says because of the transient nature of many of the residents, they are in the process of contacting them in order to ensure there was no loss of human life.
He says there may have been some pets belonging to the residents that may have perished in the fire.
Two Hanover Police Service officers were treated for smoke inhalation.
Police have closed off 10th Street between 9th and 11th Avenues and Knoll says it is expected to remain close for the rest of the day.
Displaced residents are being encouraged to contact Grace United Church.
The cause of the fire is under investigation.
