This is almost certainly not the answer you're looking for, but I think the tactics you're looking for are similar:
If you remove the four brown matchsticks in the image below, and move them to the blue positions...
...it now spells
CIχNCINATTI. This is the Greek chi, making the "ch" sound in "loch" -- there is an (admittedly tenuous) argument that it is "ch" in the same way that Σ is "s".
And the rest of the matchsticks now spell CINCINATTI, a city in Ohio. So if you buy the argument above, I have therefore made "CH IN A TOWN", as requested.
A less stretchy solution would likely involve
a different city - CHICAGO, ONTARIO, and CAIRO also seemed potentially feasible.
I found that CHICAGO was almost doable by turning the EM into a CH, but it's not clear how to make the G... and more importantly, it's also missing a C, so it would only be H IN A TOWN at best.
Given the weirdness of the shape of the A, the actual solutions will likely involve either:
(1) turning the A into an H or an N, or
(2) turning the N into an A.
It may also require the image to be turned upside-down or sideways, though that seems less likely to me: most of the letters are no longer letters from a different angle, so the moved matchsticks would have to touch nearly all of them.