In this paper, we study the relationship between crack nucleation and
failure of an interface reinforced by chains and the results of a line
ar stability analysis presented in part 1 of this study (preceding pap
er in this issue). We develop a numerical procedure to simulate the de
formation and failure of such an interface. We demonstrate that instab
ilities lead to spatial localization of the deformation which determin
es the failure mode of the interface. The dependence of the failure mo
des on the material parameters of the system, such as the number of en
tanglements of the pull-out chains, the level of applied load, and the
amplitude of the initial perturbation, is studied.