Pusateri's, a prominent supermarket in Toronto known for its finest grocery selection, has announced it is starting bankruptcy proceedings and will close nearly all of its locations.

Pusateri's has been known for its high prices and high-quality goods including gourmet meats, cheeses, and produce, and it did not participate in the same periods of economic boom and high profits as Loblaws and other chains.

As consumers grapple with rising food prices and discount grocery stores like No Frills drawing more shoppers, Pusateri's acknowledged this week that it is facing significant financial pressures.

The chain had been on a growth trajectory in recent years, expanding beyond its base in North Toronto to locations including Eaton Centre and Bayview Village, as well as what was expected to be its latest location on College Street in Little Italy.

Signs of trouble emerged earlier this year when the Yorkville location closed after 20 years. The store in Bayview Village was closed earlier this week.

Owner Ida Pusateri informed suppliers on Friday that the brand will consolidate its operations to its original sole location on Avenue Road near Lawrence and that the Eaton Centre operations "will remain open at limited capacity as a food service only."

The announcement confirmed that Pusateri's will undergo restructuring to ensure "long-term success and sustainability" and the "right size" for the business.

Earlier this year, new development plans at the Avenue Road location indicated that the store's future may also be in flux.