Diedrich Coffee Inc. (Nasdaq:DDRX), one of the largest retailers in the U.S. specialty coffee market, announced yesterday that it is reducing its estimate of the restructuring charge it will record in its third fiscal quarter, which ends on March 7, 2001. At the time of its second quarter earnings announcement, Diedrich Coffee indicated that it would take a charge of approximately $1.8 million to $2 million during its third fiscal quarter. This charge represented estimated costs associated with the relocation of the administrative support center for its Gloria Jean's division to the company's home office in Irvine, severance expenses resulting from the elimination of a number of administrative positions and the closure of certain underperforming company operated locations during the next 12 months.