Jobs at the Comet store on Tritton Road in Lincoln are at risk after the company has called in administrators on Thursday.
The electrical chain also has two other Lincolnshire stores in Boston and Grimsby. A total of 6,500 retail jobs at 240 UK stores are are risk.
Restructuring specialist Deloitte is handling the administration, just months after Comet was bought for a nominal £2 by investment firm OpCapita in February.
Comet has struggled to compete in recent years against competition from the supermarkets and cut-price websites.
A Comet spokesperson said: “Comet Group Limited can confirm that it has today taken steps to seek the protection of the Court with a view to the Company entering into Administration during week commencing November 5 2012.
“In the meantime the board is urgently working with its advisers to seek a solution to secure a viable future for the company.”
Comet’s collapse comes a month after the failure of JJB Sports, which closed its store Lincoln.