The retailer, which has 18 stores across the country, also said it will cut the price on everything in its stores to help generate cash while it files its notice of intention to make a proposal under the Bankruptcy and Insolvency Act.
Petcetera has more than 300 employees in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Nova Scotia.
The privately held company said it will review all areas of its business, including the number and locations of stores, as part of its restructuring.
The extent of restructuring will directly depend on the success of the inventory liquidation sale, Petcetera said in a statement.
In 2009, Petcetera closed 31 of its stores as part of a restructuring.
"Since the restructuring of the company in 2009 we have made every effort possible to profitably maintain our position in the markets we serve," Petcetera president and CEO Dan Urbani said.
"Unfortunately, due to the extremely difficult Canadian retail industry and pet supplies segment, this has not been possible and we must now take drastic measures in the short term to ensure that Petcetera is viable in the future."
Petcetera sells supplies for pet owners as well as offers services including pet hospitals, grooming, obedience school and doggy daycare centres.