Chi-Chi's to close Sunday

0 Comments | La Crosse Tribune, Sep 14, 2004 | by Cahalan, Steve

ONALASKA, Wis. - Sunday will be the last day for Chi-Chi's Mexican Restaurant at 9396 Hwy 16 in Onalaska.

The restaurant opened in February 1985 in the East Towne Plaza shopping center and has about 35 employees.

Employees were notified Sunday and Monday that the restaurant will close next Sunday, said Fred Schmelzer, the restaurant's executive general manager. Schmelzer said he has been told Outback Steakhouse Inc. plans to close a of the remaining Chi-Chi's restaurants.

On Aug. 3, Outback announced a U.S. bankruptcy judge approved its $42.5 million bid at an auction of designation rights for 76 properties of ChiChi's Inc. and its affiliates. It said the designation rights allow Outback to transfer properties to itself, to transfer properties to others, or to require Chi-Chi's to retain properties.

Schmelzer said he doesn't know whether Outback will sell the Onalaska property or switch to another Outback concept.

Schmelzer said he doubts the Chi-Chi's in Onalaska will be converted to an Outback Steakhouse, because one already is operating near the Home Depot and Wal-Mart Supercenter stores in Onalaska.

The Chi-Chi's in Onalaska has been profitable, Schmelzer said.