At 01.57 hours on 25 Aug, 1942, U-176 (Dierksen) fired a spread of two torpedoes at the convoy ON-122 and heard detonations after 1 minute 33 seconds and 1 minute 36 seconds. At the same time U-438 fired her first torpedo, heard a detonation after 1 minute 31 seconds and observed a ship sinking after 3 minutes. A second torpedo fired at 02.01 hours hit below the bridge of another ship and the third fired at 02.05 hours missed its target and hit a ship beyond. It seems that the Empire Breeze was hit by both U-boats at the same time and sunk southeast of Cape Farewell. The second ship hit by U-438 was probably the Trolla, the only other ship hit at this time.

The Trolla (Master Ole Grande) was hit in the engine room and sank by the stern within one minute. The master and four crew members were lost. The survivors abandoned ship in one lifeboat and a raft, were picked up after three hours by HNoMS Potentilla (K 214) (LtCdr C.A. Monsen) and landed in St. Johns on 27 August. Nine men had been injured and were taken to a hospital where the chief engineer died of wounds on 28 August.