What if you used plywood on each side as a vertical support for the "arms" of "chair", maybe even leaning outward a little, and attach plywood arms to headboard back... then take a peice of PVC pipe, 4-5 inches in diameter, cut a slot that will fit over top edge of your plywood arm supports to simulate rounded "arms" of top of your "chair"... and then cover with an inexpensive foam for some softness, and cover entire headboard with fabric of your choice...
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