OH NO!!!!!!! I just want to give you a huge hug cause i have always been paranoid os this happening to us! Archie has had his Tigger (gigger) since he was a couple of months old and is very attatched so i bought 3 of them so i had backups, we lost one at the shops 12 months ago and i freaked out even though i still had 2 left. he has 2 now that i rotate and im gonna buy a couple more while they still are available. maybe you could find a toy that is similar in size/colour/texture? Archie had a giraffe toy to start with that he always slept with when he was tiny but it startd to break and wasn't safe enough so i went and found Tigger who is a similar size/colour/texture. He was a lot younger though and more easily fooled.

I really hope you can find a replacemet, i reckon if you find a new special toy it wont take long for grace to love it, and try and get something that you can buy a few of, so you can rotate them and wash them. GL