Misshapen hat we fetch producing gossip (4,3,3)
I believe the answer is:
chew the fat
'gossip' is the definition.
(I've seen this before)
'misshapen hat we fetch' is the wordplay.
'misshapen' is an anagram indicator.
'hat'+'we'+'fetch'='hatwefetch'
'hatwefetch' with letters rearranged gives 'CHEW THE FAT'.
'producing' is the link.
(Other definitions for chew the fat that I've seen before include "Talk socially" , "Mrs Sprat liked to" , "Chat leisurely (colloq.), hatchet few (anag.)" , "Gossip, chat" , "Jack Sprat wouldn't" .)