The Walter Hood struck a reef in Wreck Bay, New South Wales about 8 p.m. and immediately began to break up. An anchor was dropped causing the head to swing to sea, the vessel healing over dangerously. Captain Latto was hit by a large wave that swept him to the side of the ship, breaking some of his ribs. Latto was taken to his cabin with the rest of the crew, some of which were to survive on the stern for four terrible nights (Sydney Morning Herald, 2 May 1870).