Police are today still hunting a knife-wielding man after he threatened a person near the Square Edge building on The Square.
Police and a dog conducted a full search of the building yesterday afternoon, but the man is thought to have escaped.
A victim had been taken to the police station, police confirmed.
Police are still looking for the man and will be visiting buildings and businesses around the area.
"We believe he could still target premises so we will do proactive work and try to locate him today," Sergeant Paul Adrian said.
Police said the man was thought to have been carrying a brown satchel and had a bandage on his arm.
OE Cafe employee Elise Perrie was clearing plates when she saw a man wearing a hat running through the area about 1:30pm.
"I was clearing plates when he just charged through the store. There was an older guy right behind him.
"It looked like he was chasing him."I didn't see a knife but it seemed pretty strange."
Senior Sergeant Phil Ward said police were called to the Square Edge cafe about 1.17pm after a person was threatened by a knife-wielding man.
Police surrounded the building for about an hour while they searched for the man, who was believed to still be inside.
It is understood that he had instead escaped. Police are yet to locate him.
Palmerston North Constable Steve Field said police were working through what happened, but it seemed there was a confrontation and a property theft had taken place.
- Manawatu Standard
Will the bus shelter walkway planned for The Square be ready by the end of June?Related story: Covered walkway for Palmerston North bus users by winter