At 05.43 hours on 10 Oct 1941 the Nailsea Manor (Master John Herbert Hewitt), a straggler from convoy OS-7, was hit on the port side by one torpedo from U-126 and started to list to starboard. The deck cargo was hanging over the port side and a fire broke out in the shelter deck, where the mail was stowed. The crew, aware of the cargo of ammunition abandoned ship quickly before she sank northeast of the Cape Verde Islands. The master, 35 crew members, five gunners (the ship was armed with one 4in and one 12pdr gun and two Hotchkiss and four Lewis machine guns) and one passenger (a Petty Officer in charge of the landing craft) were picked up by HMS Violet (K 35) (LtCdr K.M. Nicholson), transferred to the British merchant City of Hong Kong when they rejoined convoy later that day and landed at Freetown on 14 October.

The Nailsea Manor was straggling since 1 October together with the Ger-y-Bryn and Hazelside when they had encountered bad weather west of Cape Blanco and started to have troubles with their deck cargoes. After the cargo was secured and the weather became better, the ships continued at 10 knots, accompanied by the corvette, which stayed with the ships since they dropped out of convoy.

The British landing craft HMS LCT-102 (450 tons) stored in four sections on deck was lost with the vessel.