Fire crews were called to the Unley Rd shop about 6.45pm and saw six-foot-high flames coming from the doorway.
Firefighters managed to bring the fire under control within 15 minutes and limited the damage to $30,000.
The fire was believed to have been started when hot towels left in the shop spontaneously combusted.
The male hair salon was founded in 2006 by Mr Gray, who previously played for the Sydney Swans and St Kilda football clubs.
FIRE crews have tackled two large factory blazes in Adelaide's southwest, one at an excavating business at Edwardston and another at a Richmond car mechanics.
Firefighters fought a toxic blaze at an excavating and earth moving business at Edwardstown about 11.30am before being called to a second blaze at a Richmond car mechanic workshop about 3.45pm.
More than 40 firefighters fought the blaze at Terra Forma, an excavating and earthmoving contractor on Wilfred St in Edwardstown, about 11.30am, causing $500,000 damage.
Bill Campbell was working in the building next door when he smelt smoke and went outside to see it billowing from the business. 'It was rapidly intensifying,' Mr Campbell said.
'I grabbed my camera to take some vision and, before I knew it, I found myself in the frontline of the fire where police and firefighters were working their best to put it out.
Mr Campbell said he heard a number of explosions as the warehouse roof collapsed.
'I heard loud explosions and I thought some of the fuel load inside might have gone up. There was one that was exceptionally loud and there were flames about a metre or so high.'
The fire was sparked shortly before 11am as police set up road closures at South Rd and Acland St, and Wilfrid St and Raglan Ave, which caused some traffic delays.
Witness Sonya Tostevin, 27, said it didn't take long for the fire to take hold. 'It went up really quickly,' she said.
'We didn't want to get too close because it looked quite dangerous.'
MFS Assistant Chief Officer Peter Mason said the fire was fraught with risks due to the machinery and fuel load inside the building.
'There were excavators inside that have a high fuel load as well as oxy acetylene but we managed to get to that as early as possible,' he said.
'The building is gutted and a wall at the rear has collapsed along with the roof.'
Mr Mason said it was another day in a week of fires that have hit the state.
'It's been a busy week so we're glad we managed to contain the fire to the one building,' he said.
An MFS spokeswoman said it would be several days before a cause could be determined because of the extent of the damage.
Meanwhile, fire crews battled a blaze burning through the roof of the Goodyear Autocare workshop on Richmond Rd.
Firefighters were unable to enter the building because of the risk of collapse. Crews tackled the fire with ladders from above to prevent it from spreading to neighbouring businesses.
Nearby worker Craig De Jong, 32, was working three doors down when he noticed smoke coming from the building and called the MFS. 'It was extremely thick smoke ... everyone was standing out the front,' Mr De Jong said.
'It didn't take very long to take over the building,' Mr De Jong said.
'It definitely gutted the building ... there's not a lot left there.'
One person was treated for smoke inhalation and fire-cause investigators will determine the cause of the fire.
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