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A major Melbourne shopping centre has been locked down as Victoria police responded to reports of “two rival groups” fighting each other with knives.

A man in his 20s was taken to Royal Melbourne hospital in a serious but stable condition with “upper body injuries” on Sunday afternoon. Three people at the shopping centre were treated for anxiety, with one customer reporting “chaos” and “confusion”.

In a statement, Victoria police said two people were arrested after the brawl. One was 15 years old. It was alleged that the fight, which began in the shopping centre’s food court, was targeted, and those involved knew each other.

Emergency services were called to the shopping centre in Preston at about 2.30pm after reports of “opposing groups fighting – some armed with knives”.

Images shared on social media showed one man carrying a large blade and customers taking shelter in shops with closed doors. Guardian Australia has not independently verified those photos.

“The exact circumstances surrounding the incident are being investigated, but it is believed the incident was targeted and parties are believed to be known to each other,” a police spokesperson said.

“Investigators are keen to speak with anyone in the area at the time who may have witnessed the altercation.”

The shopping centre remained locked down at 4pm on Sunday.

Victoria police’s Supt Kelly Lawson described the alleged incident as “disgraceful” and said it would have been “absolutely frightening” for those at the shopping centre.

“What I want to do is reassure the community that this was not just some random thing that happened, it was a pre-organised gang meet-up,” Lawson said. “It was a planned event.”

Police believe another incident on Saturday prompted the two groups to meet at Northland. They allege the fight may have been an act of retaliation by one of the groups.

Lawson said police arrested one person within six minutes of receiving the initial report. She praised the actions of shop managers who worked to protect and comfort people locked down in stores.

One machete was found at the shopping centre. Police were working to identify eight other people allegedly involved in the incident.

Investigators would remain at the shopping centre on Sunday night gathering intelligence but were working to ensure it would reopen on Monday.

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Michael Pavlou, who was at Northland with his three-year-old son, described scenes of “panic” and “confusion”.

“As I walked out of Coles, I saw a group of people running,” Pavlou said.

“They looked young. At first, I thought they may have stolen something. But then I noticed more people running and then everyone running.

“As we started running, I turned to the person next to me and said ‘what’s going on?’ They said ‘Someone has got a machete.’ I had my son in the trolley with our groceries.”

Pavlou said he did not see the incident that sparked the chaos. He said people were running through Myer and the food court.

“When you see that many people running in a shopping centre, it’s not good,” Pavlou said.

“You don’t want to stick around and see what’s happening.

“There was confusion. There was definitely panic. Everyone was trying to get out. The car park became gridlock. After getting out, we started hearing sirens and a helicopter.”

Victoria police urged anyone who witnessed the incident or had relevant footage to contact Crime Stoppers.

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