Suppliers tightened terms as the firm tried to reach its peak stock requirement for the Christmas shopping period. The company had a poor festive trading period last year with a 14.5 per cent drop in sales against 2010.
Comet was bought for a nominal £2 by the investment firm, OpCapita, earlier this year. The company was employing 6,500 staff in 240 stores but 1,500 jobs have already been axed.
Over 300 jobs have been cut at head office in recent weeks and a number of senior staff including chief operating officer Carl Cowling have left the company.
After the company was placed in administration gift vouchers have been suspended temporarily while the company assesses the situation.