I have never sent a bag back before, but I have a couple of thoughts on this. 1) "unable to repair to coach standard means they can't/won't fix it. Period. 2) Getting a 40% off coupon on a 5 year old bag is good customer service, I would be pleased with that. 3)As another poster said, take it to a leather repair shop and get an opinion on if it can be fixed, and how much it will cost. I don't feel coach is responsible for a bag that I'm assuming you have carried for 5 years.....I'm assuming it hasn't been sitting on a shelf all these years and this sounds like normal wear and tear.......I could be wrong about that of course, stranger things have happened 
