Mine had a similar (although only half that size) dent in the front fender when I bought it.
My brother-in-law took my fender (after I removed it, of course), a piece of 4X4 sanded out, a GOOD cushion, and a rubber mallet.
20 minutes later, you couldn't tell there was a dent there before... you really have to look for it.
However... I DO like that leather bib!