I personally wasn't involved on the upholstry side. I mostly stripped, sanded, and repaired/reglued the wood peices. But we had an upholstry guy who could redo that chair easily. It looks like just two loose cushions. Is that right? Doesn't get much easier than that.
It wasn't cheap. Back then (17 years ago) that chair would have run about $150 or so to redo. No idea what it would be today. You should look in your yellow pages for upholstery/reupholstery and make a few calls.
Naugahyde is still in business, and they may still even have that "fabric." If you sew, you could order the fabric online and do it yourself.