CHI-CHI'S <CHIC> TAKES 20 MLN DLR CHARGE
Chi-Chi's Inc said it has taken
a 20 mln dlr pretax charge against earnings for the third
quarter ended January 31 to cover the cost of disposing of 21
"underperforming" company-owned restaurants.
    The company also said it has agreed to repurchase up to
three mln common shares on the open market.
    The company now has about 27.1 mln shares outstanding.
    Chi-Chi's today reported a loss for the third quarter ended
January 31, after the pretax charge and a 7,305,000 dlr tax
credit, of 10.4 mln dlrs, compared with a year-earlier profit
of 2,144,317 dlrs.
    Chi-Chi's said it believes the disposition of the
restaurants has the potential of increasing its pretax earnings
by about two mln dlrs next fiscal year.
    The company said it will use existing cash resources for
the share repurchases.
 Reuter
