On 26 January 1945, Manners joined the British frigates HMS Aylmer, HMS Bentinck, and HMS Calder of the 4th and 5th Escort Groups in a depth-charge attack on the German submarine U-1051 in the Irish Sea about 20 nautical miles (37 km) from The Skerries, Isle of Man. During the engagement, U-1051 fired an acoustic torpedo which exploded near Manners' propellers, breaking her in two; her stern section sank, and four officers and 39 ratings were killed and 15 ratings were wounded. Aylmer, Bentinck, and Calder counterattacked, forcing U-1015 to the surface with depth charges and sinking her by ramming. 

Manners' forward section remained afloat and was towed to Barrow-in-Furness, England, where it arrived on 27 January 1945. Beyond economical repair, she was declared a constructive total loss.