Derived from the Hurricane, the Henley was intended as a light bomber but only ordered as a target tug, fitted with a winch on the left side of the rear cockpit. 200 Henley Mk.IIIs were built by Gloster between November 1938 and September 1940, but were found to be prone to Merlin engine failures. Apparently the cooling system was not up to target towing at high engine speed but relatively low airspeed. L3261 crashed on approach to RAF Catfoss, Yorkshire, on 18 July 1939.