On the evening of 27 January 1974, a severe storm caused the vessel to drag her anchor while she was waiting at the Tail of the Bank to deliver sugar to the James Watt Dock in Greenock. Her captain ordered the engines to be started with the intention of running for the more sheltered waters of the Gareloch but before she could be brought to power she drifted onto the taut anchor chains of the BP tanker British Light. The tanker suffered no damage but her anchor chains holed the sugar boat below the waterline, allowing water to pour in.
Captayannis’s captain, realizing that water was flowing in so fast that she was in imminent danger of sinking, opted to beach her in the shallow waters over the sandbank and steered to the desired spot where she stuck fast. The pilot boats, the tug Labrador and Clyde Marine Motoring’s Rover came to assist. The vessel heeled over so far that it was possible for the crew to jump onto the deck of the diminutive passenger vessel. 25 of the crew were taken ashore aboard the Rover, but the Captain and four crewmen waited on the Labrador, standing off the stricken vessel. The ship finally succumbed the next morning, rolling onto her side. She has lain there ever since. Most, if not all of her more valuable metals and fittings have been removed by looters, leaving just her steel hull and superstructure, though some of her wooden deckings remain in remarkably good condition after more than 40 years in the sea. Her hull remains sound, though her thinner deck plates are starting to rust through with holes opening up in places.