At 06.59 hours on 7 Feb 1943 the Henry R. Mallory (Master Horace Rudolph Weaver) in station #33 of convoy SC-118 was torpedoed by U-402 about 600 miles south-southwest of Iceland. One torpedo struck on the starboard side at the #3 hold. The explosion damaged the main steam line, destroyed the oil pump and engine room gauges and blew off the #4 hatch covers. The stern settled quickly and gradually began to list to port until it sank 30 minutes after the hit. The ship had ten lifeboats for the nine officers, 68 crewmen, 34 armed guards (the ship was armed with one 4in, two 3in and eight 20mm guns) and 383 passengers (136 US Army, 72 US Marine Corps, 173 US Navy and 2 civilians). Two of them were destroyed by the explosion, a third could not be launched and two more on either side capsized in the rough seas. Only three boats with 175 men cleared the ship, many others jumped into the water and tried to reach the rafts.

None of the other ships in convoy knew that the troop transport had been hit. USS Schenck (DD 159) searched for survivors from the Toward and saw lights in the distance. The skipper requested permission to investigate the lights, but it was denied. The survivors were found four hours after the sinking by USCGC Bibb (WPG 31), it was only then that it was discovered the Henry R. Mallory had been hit. The cutter rescued 205 survivors of which three later died and USCGC Ingham (WPG 35) picked up 22 additional survivors, but two of them died later. The master, 48 crew members, 15 armed guards and 208 passengers were lost.