It might be more $ than you want to spend, but the Bemz slipcovers for Ikea furniture are very nice (I recovered my faded blue Klippan in a sharp gray cover).

Don't IKEA do slipcovers for some of their couches? Maybe you could find one to fit?

Otherwise, it seems to me that you could fashion slipcovers for just the arms. I remember old people always had them when I was growing up - but if you made or had them made from some sort of modern or funky fabric they could look great (as if you had done it on purpose to jazz up the couch!) - and luckily the style of couch lends itself to a look like this.

I am thinking a rectangular slipcover which fits over each arm, reaching down just a little bit longer than the seat cushion so you can tuck it in a little on the inside... If you know anyone who can sew they should be able to do this for you no problem, otherwise you could maybe try Alchemy at etsy.com, where you can post requests for custom items.

Some examples to show what I mean , but they would have to be longer and funkier, or you could always go for red:

http://www.unravelmills.co.uk/index.php?main_page=product_info&products_id=161

http://www.slipcovershop.com/Product_List/arm_cover_protector.asp

Maybe you could play it up with the demi-slipcover option (don't know if these have a specific name) by making a removable cover that goes over the entire arm and hangs down a few inches or even half-way down. Rather than trying to match the red, you could use black leather or a bright pattern that has some of the red in it. Of course, you'd want to make covers for both arms so it looks intentional. And adding a lumbar pillow or a removable wide "stripe" down the middle in the same fabric would take it even further - hard to tell b/c the photo doesn't show the whole couch.

Isn't that the Klippan? Ikea sells a multitude of covers if your budget doesn't allow for something custom.

http://www.ikea.com/us/en/catalog/products/60070599

yup. Bemz has a slipcover specifically for your sofa. Of course you would no longer have the look of leather...

I would use something like cotton balls to fill in the area where the foam is missing, then neatly cover the torn area with red duct tape. Next, attach velcro to the patched area and fold a throw over the arm. It will stay in place to cover the repair and still be removable for cleaning or changing the look. Ikea always has some really cheap throws.

One of those lambskins from Ikea would look good against the red leather (you'd have to move your equally fluffy pillow, though).

I'd have an upholsterer fashion two angled "caps" to fit over each arm. A contrasting-colored leather would look cool.

lol Now I'm glad we didn't go for this version of the couch last month. Now that's 600 bucks gone down the drain.

Of course, rather than trying to blend something you could try and make the arms stand out. Perhaps make a small leather cover for the arm ends in a contrasting color for each side and add it with upholstery cement. Cover the top, the front and triangle pieces on the sides, with stitched edges. Fill in the the missing foam with foam from any store. Get the finished leather of many colors from Tandy or someplace and sew the shapes yourself. Use an old leather miniskirt!

Fancy and cool would be to make those covers in stainless, sand any edges, and add them.

It will be hard to match the leather and color, but something that stands out and contrasts on both sides could look like a cool IKEA hack. Use you imagination and match your apartment.

I have no idea if this would work, but I know that a relative used one of these kits (I have no idea which one) to repair so many different things and one could not tell that the furniture had been damaged.

http://www.leathermagic.com/Pages/lthrrepkits.htm

Sew something that fits over the arm (in a funky or contrasting fabric) with pockets in it to hold remotes, magazines, knitting needles, a beverage even.

the term is "antimcassar"

oops -- antimacassar

Mr. Dangerous comment is completely ridiculous and totally wasteful. Who's to say that you replace the sofa completely and your puppy takes that one apart as well?

How about one of these "C" tables? If you have room to pull your couch out from the wall a bit, you can position the table to just cover the damage, and you'd have extra space to display something, or use it to hold drinks and other objects. Here's one from CB2: http://www.cb2.com/family.aspx?c=114&f=3033

I think a fabric slipcover on top of the smooth leather would always feel "slippery." Matching the color and grain of the leather will be impossible. Embrace the damage. Find a leather in the same color with an obviously different texture (i.e. suede or lizard), or a matching texture and contrasting color. After stuffing the hole, make one or multiple "patches" in fun shapes. You can use craft scissors with decorative edges, contrasting thread, or decorative stitches to make your creative solution as sophisticated or as playful as you wish.

if the slipcover solution does not work out for you, then just reupholster the arms, it is easy and you do not even have to sew, just get material and either take arms off and redo the stuffing on the corner or just fill it in and put material over and staple on the bottom. you do not have to have exactly the red material maybe a black or a print there are beautifull materials instore.
antonietta

It looks to me a great furniture but I think, it can be repaired by professionals.

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