Use the xForm modifier and collapse. Also if you don't like the white bounding box you can turn it off by unchecking "Selection Brackets" in your Viewport Configuration.
Hmmm, you could probably use something like the skin wrap modifier (taking the animation from the original mesh. There's probably a more efficent way of doing it though.
I suspect your model has non-manifold topology. Convert to Editable Mesh, then try again. Also use the utility Reset Xform, then Collapse the modifier stack.
Just to be clear, can we modify the silhouette say extend the hilt or make some extra curves on the blade or even flip some parts (flipping the end of the hilt)
I'm not sure what the initial problem might be, but could this possibly help --> http://hannesdelbeke.blogspot.be/2014/05/modular-arcs.html (especially the link to his Advanced Bend modifier) ?
New throne sculpted, with a bit more subtlety in the damage, and also modified the low poly to accommodate better for the baking process! =D Fingers crossed that it works better this time!
that pattern is copied from a norse mythology decoration (Odin's crows) i found on google (also modified with a photoshop celtic triskell brush to fit the shape of the cloth piece):)