The most common and most likely answer to this crossword clue is the 5 letter word SATIN
I've seen this crossword clue in The Guardian
S
A
T
I
N
More clues leading to the result SATIN
- Occupied a chair, wearing shiny cloth
- Acted as a substitute silk
- Stain ruined shiny material
- Smart, regularly visited in silk?
- Material appeal, money
- Shiny material presumably didn't stand out
- Maybe demonstrated material
- Glossy fabric was a substitute
- Was there to observe material
- Armchairs should be this material
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 = satin.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 SATIN mean?
SATIN noun- A cloth woven from silk, nylon or polyester with a glossy surface and a dull back. (The same weaving technique applied to cotton produces cloth termed sateen).
- To make (paper, silver, etc.) smooth and glossy like satin.
- Semigloss.