[lugerholsterrepair]

Wayne..I like to be upfront with my opinions. Few collectors will be interested in tour holster in it's present condition.
Would a good cleaning, spot re-dye and leather treatment add or detract from the value? I get this question often. Take your used car down to the for sale lot, dirty, chipped paint, black junk all over the floor mats. Will cleaning it up help you sell it for more? Most people would say yes.

The insect chewed portions.. the insect damage could probably be re-dyed if someone chose to, as the affected areas are generally smooth - the only ate the finish, not the leather itself. UHH nope. The epidermis has been removed. That's the very smooth very thin outer layer. These insects had to eat something so they licked the icing off the cake.
IMO this holster needs a very thorough cleaning, dying and some lanolin. Dying will not FIX these chewed areas..but it will minimize the damage as much as possible. Help to blend them in and they will not be so stark.
Price..Unfortunately for this holster..before poor storage and voracious insects it was durn near mint. The buckle still has almost all it's original paint. Could have been in the$6-700 range easy enough. ANY damage like this to a mint holster is a disaster. As the holster is now I would agree with previous posts. I have a MINT brown Luger holster that would easily be worth $700 except it has a name in ink under the top lid. Now it's a $3-400 holster. MINT is mint and anything less is a kick in the crotch. A name is different than exterior leather damage..
IMO investing say 50 bucks in making the holster look as good as it possibly can might not bring you a huge return but at least it's not money wasted and makes a holster that much easier to sell.
Right now it looks pretty knarley.