Well, they didn't do anything. She said that there was no way that I could get a new bag and that she could recommend a cobbler, but I'd have to foot the bill.
This is contrary to their 1 year warranty policy:
Handbags are protected from the original date of purchase by a one-year limited warranty (proof of purchase required). If the handbag or small leather good proves to be defective in material or workmanship under normal use anytime within the first year, we will repair or replace the item free of charge with same or comparable product. Defective handbags will not be returned to customer.
It has been 24 days since the original purchase and there was nothing they could do for me. I definitely will not be shopping at Michael Kors anymore.