(I forgot to take pictures while making it, but you can see the flap here)
Then I poked four holes in the back of the bag and restrung the ribbon from the handles, tying the ends in knots inside the bag.
I threaded a scrap piece of ribbon through the holes that were left in the flap from the original handle and tied it into a bow. Velcro was placed on the inside of the flap and the outside of the front of the bag for a closure (see above pictures). Then it was ready for a little preschooler: