The most common and most likely answer to this crossword clue is the 7 letter word WORSTED
I've seen this crossword clue in The Guardian
W
O
R
S
T
E
D
More clues leading to the result WORSTED
- Material from journalist qualifying for booby prize?
- Got the best of fine fabric
- Fabric in front of warehouse stored incorrectly
- Fabric might be most ghastly when covering Edward
- Argument about way journalist’s spun yarn
- Material set out in program
- Beaten material
- Get married, restricting gold frills to shirt material
- Wiped the floor with woollen fabric
- Fabric displayed by wife over Irish tweed regularly
Buddy explains!

The straight part
We know that "Fabric" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case fabric = worsted.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does WORSTED mean?
WORSTED noun- Yarn made from long strands of wool.
- The fine, smooth fabric made from such wool yarn.
- To make worse.
- To grow worse; to deteriorate.
- To outdo or defeat, especially in battle.
- Defeated, overcome.