I had the same thing happen the chipboard just gave way because it could not hold up to the weight of the flatware and eventually just crumbled and pulled off. I fixed it by re making the the sides back and front out of a piece of trex decking I has left over and just cut it to the same size with the same rabbits, etc then assembled it with brad nails and gorilla glue. I reused the bottom as it was still in good shape.
Also, what is that on your counter, ice breaker? Motorcycle peg?
