CHI-CHI'S &lt;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.
  

