Handled fabric (4)
I believe the answer is:
felt
This clue is a double definition.
'handled' is the first definition.
(feel can mean to handle)
'fabric' is the second definition.
(felt is a kind of fabric)
(Other definitions for felt that I've seen before include "Soft fabric; touched" , "Touched the carpet underlay" , "Baize-like cloth" , "Cloth of pressed wool and fur" , "Was affected by" .)