Despot to manage clothing empire (7)
I believe the answer is:
ottoman
'empire' is the definition.
(I've seen this before)
'despot to manage clothing' is the wordplay.
'clothing' indicates a hidden word (the solution is covered or clothed by the clue).
'OTTOMAN' can be found hidden inside 'despot to manage'.
(Other definitions for ottoman that I've seen before include "Turk; low stuffed seat" , "that lacks arms and backing" , "Chest padded as seat" , "Description of empire" , "Am not to (anag)" .)