Distressed Hellenic fabric (8)

I believe the answer is:

chenille

'fabric' is the definition.
(chenille is a kind of fabric)

'distressed hellenic' is the wordplay.
'distressed' is an anagram indicator.
'hellenic' is an anagram of 'CHENILLE'.

(Other definitions for chenille that I've seen before include "Soft, velvety fabric" , "Velvety cord used in clothing, carpets etc - Hellenic (anag)" , "'Soft, shiny, velvety material (8)'" , "Soft cord fabric" , "Hellenic (anag) - material" .)

I've seen this clue in The Telegraph.

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