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More than 100 people were displaced on Thursday when fire ravaged two buildings in Surry Hills, including the heritage-listed former RC Henderson hat factory.
NSW Fire and Rescue say they are still unable to access the building after one of the walls moved 75mm overnight.
The Surry Hills building destroyed by a “once-in-a-decade” fire remains very unstable with the walls moving more than seven centimetres overnight.
Fire and Rescue NSW crews remain on scene in Sydney.
The Montreal police arson squad is investigating after dozens of cars were torched in Lachine overnight. Police believe the fires are connected.