Town suffered their sixth consecutive defeat after losing 4-0 to Burnley at Turf Moor.
Goals from Sam Vokes and Chris McCann saw Town go in two goals behind at the break, before McCann added another before Jay Rodriguez sealed the win with 13 minutes to go.
Paul Jewell made four changes to the side that lost to Reading on Saturday, with Arran Lee-Barrett replacing the injured Richard Wright in goal.
Lee Bowyer and Jimmy Bullard returned to the starting line-up and were joined in the midfield by the returning Mark Kennedy and skipper for the night Keith Andrews.
The game developed into a midfield battle almost immediately and it wasn't until the 16th minute before the first chance of the game was fashioned, with Lee-Barrett superbly tipping a Jay Rodriguez shot around the post and behind for a corner.
The home side fancied their chances from distance and winger Keith Treacy took aim from 30 yards only to see his effort fly over the bar after 23 minutes.
Town's first effort on goal came in the 27th minute. Some neat build up play in midfield saw the ball eventually worked out wide to Cresswell who crossed for Andrews but the midfielder saw his downward header easily saved by Clarets 'keeper Lee Grant.
Lee-Barrett was again called into action in the half hour mark, where he made a great reaction save from a close range Rodriguez header.
However the home side's pressure was eventually rewarded in the 33rd minute as on loan Wolves striker Vokes broke the deadlock.Treacy's corner wasn't dealt with by Town and Vokes got in between Lee-Barrett and Collins to squeeze a near-post header into the net.
Midfielder Treacy again tried his luck ten minutes before the break but again was denied by the reflexes of Lee-Barrett, who was making his first league appearance for seven months.
The hosts were pressuring the Town goal and extended their lead in first-half injury time. Junior Stanislas skipped away from Cresswell before crossing for captain McCann to tap home from a couple of yards out.
Jay Emmanuel-Thomas and Josh Carson emerged for the second half, replacing Kennedy and Bowyer.
Carson was soon in the thick of the action, tracking back before making a last ditch tackle to deny Treacy tapping home at the back post.
Things did get worse for Blues though after 66 minutes when McCann raced onto a long ball up-field, before outpacing the Town defence and coolly slotting past Lee-Barrett to score his second and Burnley's third of the evening.
Rodriguez had caused Town problems all game and his hard work was finally rewarded as he added a fourth with 13 minutes remaining, after cutting inside from the right before firing low into the bottom corner leaving Lee-Barrett with no chance.
Despite rallying until the end, Town were unable to fashion anymore chances and left Lancashire having failed to take anything from the game.
Paul Jewell's side are back in action on Saturday, when Watford visit Portman Road, kick-off 3pm.
Burnley: Grant, Trippier, Duff, Edgar, Mee, Bartley (Marney 50), McCann, Treacy, Stanislas, Rodriguez (MacDonald 82), Vokes (Hines 80). Subs not used: Stewart, Easton. Booked: Treacy
Town: Lee-Barrett, Edwards, Ingimarsson, Collins, Cresswell, Bowyer (Carson 46), Bullard, Andrews, Kennedy (Emmanuel-Thomas 46), Chopra, Murphy (Scotland 38). Subs not used: Cropper, Sonko.
Att: 12, 449.