TOKYO, Oct 2, 2008 (AFP) - The man accused of starting a fire which killed 15 people at an all-night video shop in Japan was a gentle father whose life went downhill when he got divorced and lost his job, reports said Thursday.

The blaze before dawn on Wednesday engulfed the Cats parlour which offered adult films in small rooms for people looking for a cheap place to stay in the western metropolis of Osaka.

Kazuhiro Ogawa, 46, was arrested and admitted starting the fire by burning newspapers, according to police. He said he wanted to die although he was not injured.

When a police officer approached him as the fire tore through the store, Ogawa reportedly said: 'I am sorry. I lit a cigarette and caused smoke. I am sorry.'

Ogawa once worked at an electronics company and was popular in his neighbourhood, the Asahi Shimbun said, quoting neighbours.

He would play catch with his son outside and take care of other local children, who grew fond of him, the newspaper said.

But he divorced when his son was still young and moved in with his mother, who then died. He then lost his job and found an apartment by himself.

One neighbour said Ogawa starting dressing flamboyantly as he took on different jobs. He reportedly managed a store and learnt sign language to work with people with disabilities.

He also moved frequently and was seen walking into different rooms of an apartment complex only wearing his underwear.

Despite going on public welfare, he was a habitual gambler, reports said.

He was hospitalised for a long time with an unspecified illness. Appearing tired, he told neighbours he couldn't work because of illness and had no money, the Asahi said.

Ogawa told investigators he had debts of more than two million yen (19,000 dollars), public broadcaster NHK said.

There has been growing concern about a deteriorating social safety net in Japan as the economy moves away from the recession of the 1990s.

A government survey found last year that 5,400 people were living in all-night lounges offering movies and comic books as they could not afford rents in the world's second largest economy.

The crime was the deadliest in Japan in seven years. In June, a young man with worries about work went on a slashing spree in a busy part of Tokyo, killing seven people.