Fine stuff, but possibly out of place (4)

I believe the answer is:

lace

I'm a little stuck... Click here to teach me more about this clue!

'fine stuff' is the definition.
'lace' can be an answer for 'stuff' (thesaurus). I am not certain of the 'fine' bit.

'possibly out of place' is the wordplay.
'LACE' is hidden within the letters.
However, I am unsure how this is indicated.

'but' is the link.

Can you help me to learn more?

(Other definitions for lace that I've seen before include "Fine decorative fabric" , "Delicate material" , "Shoe tie" , "Tear" , "A fabric; add alcohol to" .)

I've seen this clue in the Evening Standard.

Want a hint initially instead of a full solution? Install my app