A designer working in Harrogate says it's difficult to see anything on the street near his office in Stray Rein.
Aaron Massingham said:
"It got to the point where smoke was so thick it started coming into our office which was about 50 meters away near Station bridge."
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The club is expected to make an official announcement in the next 24 hours.
Officers are keen to speak with anyone who saw two men behaving suspiciously outside The Picture House pub just before the fire began.
Police say a wheelie bin was set alight and pushed against the front door of a ground floor flat