Rug Store Targeted in Prior Incidents Is Gutted by Fire : Mystery: Corona del Mar business--which sustained $2 million in damage--had been set ablaze and shot at earlier this month. Investigators speculate that the events may be connected.

A Persian rug store that had been set on fire and shot at in separate incidents earlier this month was destroyed by fire Friday, causing about $2 million in damage.

Investigators speculated that the spate of events at Orient Handel, 2421 E. Coast Highway, may be connected and are looking into several possible motives, including whether the incidents are tied to business dealings or personal revenge or are hate crimes.

The store’s owner, Hashem Kermani, 50, of Beverly Hills, surveyed the smoke rising from the rubble that was once colorful merchandise and said he did not know who made his business a target. “That’s the frustrating part: I can’t think of anybody,” he said.

On Feb. 5, an early-morning arson fire burned the front door and a rug at the shop, causing about $5,000 damage, according to police records. Four days later, someone fired a .25-caliber handgun six times at the plate-glass front windows and door, police said. No one was in the shop either time.

Police, who said they beefed up patrols in the area after the first two incidents, have not arrested anyone.

“There’s a possible connection because of the previous fire, the Feb. 9 act of vandalism and now this occurring today,” said Newport Beach Police Lt. Paul Henisey on Friday. “There’s just a little too much coincidence.”

Police said there was no indication that Kermani, an Iranian who moved to the United States about 30 years ago, was involved in the incidents. Kermani said his merchandise was not insured.

Kermani said he has operated the store in Corona del Mar for 15 years with few problems. Burglars stole $120,900 worth of merchandise in October, 1991, police records show. In 1988, vandals caused about $500 worth of damage to the building.

Police discount any link between those incidents and the current incidents.

Firefighters went to the store at 5:44 a.m. Friday after someone called them, Fire Capt. Craig Chastain said.

When they arrived at the shop, “it was flaming pretty viciously,” said Dean Wiese, a Corona del Mar resident who looked out his bedroom window and saw flames popping out of the rug store’s roof.

More than 40 firefighters worked until about 10 a.m. to extinguish the fire, which continued smoldering amid rows of carpet for several hours. Traffic along East Coast Highway was backed up briefly.

Times staff writer Rene Lynch contributed to this report.