PEACEFUL squatters who took over a former York landmark pub are considering their future after another group invaded the building.

Members of the York Peace Collective had hoped to re-establish their alternative artistic community at the riverfront Bonding Warehouse, in Skeldergate.

But they told the Evening Press today that the project was in jeopardy after a gang of up to ten people forced their way into the four-storey building.

They were attracted by a celebratory all-night rave that took place on Saturday and was attended by 150 revellers.

Squatter Dennis Price said several windows had been broken and some goods including bottles and crockery thrown around the inside of the building.

He said a collection of £60 from the party had been stolen and some campaigners had decided to leave the property for their own safety.

He said: "There's broken glass everywhere and some things have been thrown over into the neighbour's area. It's gone totally out of control. We are peaceful people and some have just got up and walked away. It's a shame as it had started off really well."

The squatters faced similar problems at Burton Croft, in Burton Stone Lane, in July last year when youths forced their way inside and began damaging property and threatening people.

The peace group first rose to public prominence when they occupied the White Swan Hotel, Piccadilly, last April to protest against the "waste" of disused properties in York.

The Evening Press called at the Bonding Warehouse today, but our entrance was barred by a man who declined to give his name. He said the squatters had left.

A York Police spokeswoman said the latest problems have not been reported. Officers were investigating a burglary at the property.

Leaseholder Lionel Davis said the squatters had been formally asked to leave, but declined. He said eviction proceedings were now in the hands of his solicitors.

Last week City of York Council, which owns the building, said it hoped the issue would be resolved as soon as possible.

Updated: 13:08 Monday, August 16, 2004