The former factory was involved in sheepskin and leather production
A group of about 15 people occupied a building in Somerset to prevent demolition after planners decided a redevelopment project was too costly.
Protesters spent the night in the derelict factory in the Morlands Business Park in Glastonbury and are demanding a "proper consultation".
Owners, South West Regional Development Agency (RDA) said they had to act quickly because the building is unsafe.
Demolition was due to start on 5 January and be completed by February.
The only safe action is to demolish the building
Carl Budden - RDA
Chris Black, one of the campaigners, said: "We are prepared to leave this building, which we now legally occupy as I understand it - until they get a court order to get us out - if they give us a guarantee in writing that they will have a proper consultation about the use of this building.
"They announced demolition plans on Christmas Eve which would start on 5 January - so there was absolutely no chance of any kind of public consultation on the fact that they were going to knock down this building - which a number of local groups had campaigned to save."
Carl Budden, of the South West Regional Development Agency (RDA), said they had serious concerns for the groups of young people who have been breaking into the site over the last few months.
He said: "We understand that this building is part of the history of the site but it has now deteriorated beyond economic repair.
"We have considered other options such as blocking up openings with concrete blocks and erecting security fencing but our fear is that determined youngsters will still get in and we simply cannot take that risk.
"The only safe action is to demolish the building."
'Important history'
The red brick building is one of a number of buildings on the land which is to be developed by the company Urban Splash.
The RDA had originally hoped the building could be refurbished but have decided the safety risks are too high.
Cllr Harvey Siggs, leader of Mendip District Council, said other buildings on the Morlands site are earmarked for renovation, including the former Baily's skin and rug factory.
He said: "It is more essential to recognise and welcome the RDA's commitment to bringing the more important historic listed Baily's Buildings back into use along with the redevelopment of the rest of the site."
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