POLICE were called to reports of a robbery on the High Street in Sandown this afternoon (Sunday).

They were called at 1.11pm.

UPDATE: Three people arrested following Sandown knifepoint robbery

Police received reports that two people were threatened with a knife and had money demanded from them.

Police have been searching in and around a derelict ocean hotel, with police dogs on the scene.

The two people are believed to be children.

Both were allegedly approached by several individuals from inside the hotel.

At least one of the individuals had a knife, and the incident culminated with a girl's coat being slashed.

It is believed that the children did not enter the building.

Police are on the scene and are carrying out enquiries.