"When divested assets head into bankruptcy in less than a year, that remedy is an embarrassing failure," Lee said. Sankaran said the FTC approved the buyer in that merger. This time, he said, Albertsons __ pending the FTC's approval __ may spin off stores into a separate company that would be led by experienced leaders. Kroger, based in Cincinnati, Ohio, operates 2,800 stores in 35 states, including brands like Ralphs, Smith's and Harris Teeter. Alberstons, based in Boise, Idaho, operates 2,273 stores in 34 states, including brands like Safeway, Jewel Osco and Shaw's. Together the companies employ around 710,000 people. Federal lawmakers aren't the only ones scrutinizing the merger plan. Earlier this month, a bipartisan group of state attorneys general sued to block Albertsons from paying a $4 billion dividend to its shareholders until they have reviewed the merger.