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Chi-Chi's sells rights, shuts down

LOUISVILLE, Ky. - Chi-Chi's, the Mexican restaurant chain, may have served its last chimichanga.

Outback Steakhouse this week closed on its $42.5 million deal for the rights to 76 restaurants in the Chi-Chi's chain, which was beleaguered by bankruptcy and a hepatitis outbreak in western Pennsylvania.

Outback plans to convert many of the restaurants into its own brands - which include its signature Outback Steakhouse, Carrabba's Italian Grills, Bonefish Grills, Fleming's Prime Steakhouse and Wine Bars, Roy's and Cheeseburger in Paradise restaurants.

"We felt it was a good opportunity to acquire a large number of good locations that we can use for our brands," said Joseph Kadow, senior vice president for Outback Steakhouse, based in Tampa, Fla.

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