On 19 November 1918, Per Brahe was in Jönköping where she was loaded with sewing machines, iron stoves and other items. A huge number of barrels of fruit puree were stowed on deck. When the ship arrived in Gränna the same evening, additional cargo was taken on board.

In total, the steamer now had 34 tonnes in its cargo hold and 47 tonnes on deck, but the deck load was not properly lashed. Eight passengers were to board in Gränna, including the artist John Bauer, his wife Ester and their three-year-old son Bengt.

When Per Brahe departed Gränna at 23.00, she set course for Hästholmen harbour, where she was to arrive two hours later. When she did not arrive at the appointed time, it was believed in Hästholmen that she had remained in Gränna because of the bad weather.

The next day a wide array of objects from the wreckage was found in the waters outside Hästholmen harbour, and people began to suspect that a serious accident had occurred. At the subsequent naval inquiry, the shipping company was completely acquitted of guilt, even though it was known that the Göta Canal ships were under pressure to meet tight timetables and took more cargo on board than they were built for.

The shipwreck was uncovered during dredging in November of that year, with divers discovering that it was on its right keel at a depth of 32 metres. In July 1922, the ship was salvaged. Divers had previously recovered the bodies found in and around the wreckage.

After repairs, the ship was put back into service under the name Östergyllen. After a series of changes in ownership and names, she finally ended up in Finland, under the name Åland II, where she was scrapped in 1959.