We have the same problem with our chocolate brown folio chairs after 5 years. Our story is similar to yours.
We were actually told by one assistant manager that the problem is recurring and that the manufacturer has remedied the issue. The result is different stitching, leather, and finish. We have 4 chairs, one of which is being replaced (all of which are showing signs on delamination, splitting, etc.) The other unmatching 3 chairs will be replaced at our cost less a discount. Our options are to buy three new matching chairs or keep the matching crappy defective chair.
Apparently Crate's merchandise holds up for only 5 years. Conversely, we have similar styled chairs from Room and Board that we bought around the same time, which still look new.
Product or Service Mentioned: Crate And Barrel Chair.
Reason of review: Bad quality.