I got this sheath out today to look at it as it has been in my safe for years and to my surprise it looks as though the leather has rotted on the back of the sheath. I hope someone may have some idea of what could have happened, and I guess Danny could tell me it it could be repaired. By the way the knife has never been in the sheath.

The knife has been in the sheath,at least once. Unless this sheath happens to not have snaps on it.

There is also a spot on the front of the sheath just above the stone pocket that is the same as the back but not as large. Looking closer the knife has been in the sheath at some time. I think I may have picked this up at Blade Show in 2004-5.

Sidney, That doesn't look like rotted leather to me me. I think it looks like something tore through the leather. Maybe a knife tip, staple, nail, ....
Was it unblemished when you put it in storage ?