Ashley Furniture/Guardsman Warranties Flaky 'Leather' upholstery; bunk warranty "run-around" Brentwood Tennessee

I went to Ashley Furniture in Brentwood early in 2009 to purchase a sofa.  There was a sale on, and a particularly good deal on a nice mocha colored comfy leather sofa.  The salesman told me it was real leather blended with fabric upholstery on the inside and led me to believe it would be sturdy.  He pushed a Guardsman extended warranty that he pointed out would cover any incident or problems that may arise with my sofa.  I purchased both for a combined price of around $685.  

I picked up my couch and with some help moved it into my place.  I kept it clean and even used some leather conditioner on it every month or two.  

After a year or two I noticed a scratch near one of the arm seams.  By early 2012, not quite 3 years after my purchase, the entire seating area of the couch had deteriorated rapidly leaving scraps of fake leather and some sort of black dust everywhere.  As soon as I realized the problem I contacted Ashley.  They dismissed my problem and pointed me to Guardsman per my extended warranty.  I sent Guardsman a detailed description of the problem accompanied by photos and a copy of my warranty.  

They first rejected my claim citing the need for more detailed paperwork, but gave me a 30-day limit to produce the documentation.  I was never given it, and had to backtrack to the store where I made the purchase.  After 3 weeks of waiting to get a copy of the paper I needed, I was starting to worry that this was their easy way out of supporting their product -- don't send the paperwork and I can't get warranty service.  With only a few days to spare I was sent the necessary documentation and forwarded it to Guardsman who promptly rejected my requests for remediation without any explanation.

I went back to Ashley and even spoke with the manager, I tried to get a repair, refund, or even just my money back on the scam warranty and they refused to do anything.  Now, as my warranty term is drawing to its end I still have no remediation.  I do, however, have a full-size sofa that is missing the outer 'leather' and has left a constant mess on my skin, floor, and everywhere else...  The dust is apparently even being inhaled by occupants of the room, as I find some specks of it in my HVAC air filters when I change them.  This is unacceptable!