Pusateri's, a prominent Toronto supermarket known for the finest quality groceries, has announced that it's initiating bankruptcy proceedings and will close almost all of its locations.

Famous for its high prices and high quality goods including fine meats, cheese and produce, Pusateri's has not participated in the same economic boom times and soaring profits such as Loblaws and other chains.

As consumers wrestle with rising food prices and discount grocery stores like No Frills attract more shoppers, Pusateri's acknowleged this week it's facing significant financial pressure.

The chain had been on a growth push in recent years, expanding well beyond its North Toronto base to locations including the Eaton Centre, Bayview Village and what was expected to be their newest location on College St. just west of Little Italy.

Signs of trouble emerged earlier this year as the Yorkville location closed after 20 years. The store at Bayview Village shut down earlier this week.

Owner Ida Pusateri announced to suppliers on Friday that the brand would be consolidating operations into their single, original location on Avenue Road near Lawrence and that the Eaton Centre operations would "remain open in a limited capacity as a food service-only operation."

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

Earlier this year, plans for a new development at the site of the Avenue Road location suggested that store's future could also be influx.