The ship continued to deteriorate, including from theft of components and a fire which seriously damaged much of the interior woodwork. The preservation campaign was ultimately unsuccessful. It was announced in March 2010 that "Manxman" was to be dismantled in Pallion shipyard. By January 2011, the ship was being decommissioned and dismantled by G O'Brien & Sons, a specialist heavy industrial and marine demolition company. The dismantling took place in a large dry dock in the Pallion shipyard, Sunderland. The ship was finally broken up for scrap in 2012.