The fabric is a canvas. Thanks!

This is an unproductive comment but I just want to say that is very bad customer service if it came like that from Pottery Barn. I ordered 6 chairs from Restoration Hardware at closeout final sale pricing and they were damaged, and they took them all back and replaced them, paid for shipping and everything.

I am not sure about covering up the damaged area only, but you could get a slip cover made for the entire headboard. Unfortunately, I assume part of the reason you ordered it are those details that would then be covered.

I thought about the slip cover idea. I just love the headboard and would hate to cover it up. Thanks!!

It would be cool if you could get two of the brass nailhead s and sew them in at both corners and make it be a cute feature!

Stencil it!

I was wondering if you clipped any loose threads (can't really tell by the picture you provided but it looks like a hole in the fabric and some loose threads around the area) and made that area as smooth looking as possible then painting a chevron design or if you could find a paint color to match the canvas exactly you could fix that small area with a matte paint? Just a suggestion. You would know it was there but no one else would notice it. That is really sad that Pottery Barn won't stand behind it.

I have painted many canvas floor cloths, canvas is made to paint on. You could try my suggestion and if it doesn't work you could stencil it. I am just trying to help you save the integrity of your headboard:)

This may end up with a more arts and crafts-y look than you want - depending on how crafty you are! - but they sell iron on fabric patches, maybe you can create an overall stripe or some kind of cap/design just in the corners - kind of like the wood detail suggested above.
I have no idea if this is reputable company, but found it on google
http://www.ironpatches.co/designer-patches-for-jeans.html
Example of a striped nailhead headboard
http://www.pbteen.com/products/677005/?catalogId=60&bnrid=3718503&cm_ven=Google_PLA&cm_cat=Furniture&cm_pla=Girls_Beds_+_Mattresses&cm_ite=Raleigh_Camelback_Nailhead_Headboard%2C_Full%2C_Horizontal_Stripe_Turquoise&srccode=cii_17588969&cpncode=30-179718517-2

I'm sorry for stalking your post but I truly think if you raised a bit of a stink with Pottery Barn That you may be able to get the help you deserve. I once ordered bamboo blinds for every window in my house (19) and after 3 months they started falling apart. I called this very reputable curtain/blind store but kept being put on hold never to return. I went to their website and wrote a review of their blinds. I was not nasty, just satiated how unhappy I was with the "quality" of blinds. Within three days I got a phone call from this very reputable curtain/blind shop. I told them my complaint & they sent me all new blinds, NO CHARGE! Well those blinds did the same thing but that's a whole other story, you need to give it another shot, don't roll over!

I like the idea of decorative corner covers or even a short slip cover that only covers the top portion of the headboard, like a hat on a head. Let us know what you decide on! =) Would be awesome if you could patch it back up somehow.

I am very surprised that PB would not take this back. I would contact customer service and if your not happy with resolution I would call corporate. Question, could not be replaced or sent back and get your money back?

How about some 3D flower appliqué, come to mind as soon as I see the damage (shame you're not able to exchange, looks a gorgeous headboard)

http://www.ebay.co.uk/itm/2-Big-Felt-Rose-3D-Flower-Applique-60mm-A050-U-PICK-/250879298141?pt=UK_Crafts_Sewing_Supplies_MJ&var=&hash=item3a69924a5d

I agree, applique might be the best way to go. I'd check out stencils for corners (and find one more fitting to the style of the headboard than most stock applique patches are) and adapt that into a custom applique, using black and cream canvas, perhaps.

http://images.search.yahoo.com/search/images?_adv_prop=image&fr=aaplw&va=stencils+for+corners

@cozy casita, those corner stencils would look great

Hi, restoredtreasure, Yes, I think something along the more formal lines of one of those corner patterns, turned into an applique, would work very well. It would be well worth having them sewn professionally ... Kristin should maybe find someone who stitches logos for a living ... they'd probably be the best at this kind of project.

@restoredtreasure ... love your work , by the way ! .. didn't visit your page till after I'd commented ... but can see why you're a stencil fan !

Shame on PB. If they don't follow thru with customer service and you'd like to keep the look of the headboard, pull the nail heads out, cover/replace the canvas and reinstall the nail heads. Go slow and use even pressure taking out the nail heads so the pin doesn't get bent. I would suggest starting at the bottom until you get a feel for it.

A corner piece attached to each side with you and hubby's initials.

Kristin those are not stencils that I used in my work, that is all hand painted:) but I have used stencils on my floor cloths that I have painted.

I'm sorry but I would be pushing this issue with PB. I would have gone beserk.

Try a band of coordinating fabric

What On The Spot Furniture Revival llc suggested is exactly what I was going to say. It's an easy fix and it's gonna look brand new in the end. No covers, no patches, just as simple and gorgeous as it was supposed to be.
There is also available a nailhead trim ( not sure about the size though or if you could find any as beautiful as the original nails) . This would help by not having so many nails to work with and makes it easy to keep the distance even. It's made of 4-5 false nail heads and one hole in which you are supposed to hammer a real nail.

But first of all I'd definitely try to save every original nail and reuse them.

What a shame on Pottery Barn!!!!

Add a wide black or accent ribbon across the top and tuck behind the side nail head. The type of ribbon that is welded or ribbed.