Chi-Chi’s plans new restaurants more than 20 years after its bankruptcy

AP Business Writer

Chi-Chi’s is making a comeback. The Mexican chain said this week it plans to open some new restaurants next year. The locations would be the first since Chi-Chi’s filed for bankruptcy protection in 2003. Michael McDermott, the son of Chi-Chi’s founder, said he struck an agreement with Hormel Foods to open the restaurants. Austin, Minnesota-based Hormel owns the Chi-Chi’s trademark and produces Chi-Chi’s-branded chips and salsas. McDermott, a restauranteur who also founded Kona Grill and Rojo Mexican Grill, didn’t say how many locations he plans to open or where. He said they will be an updated version of the classic Chi-Chi’s, which first opened in 1975.