Story with knight stealing new bedding? (5)
I believe the answer is:
linen
'bedding?' is the definition.
(I've seen this in another clue)
'story with knight stealing new' is the wordplay.
'story' becomes 'lie' (story can mean a fabrication).
'with' is a charade indicator (letters next to each other).
'knight' becomes 'N' (chess abbreviation).
'stealing' is an insertion indicator.
'new' becomes 'n' (common abbreviation eg NT for New Testament).
'lie'+'n'='lien'
'lien' enclosing 'n' is 'LINEN'.
(Other definitions for linen that I've seen before include "Sheets, tablecloth etc." , "underwear" , "Sheets, cloths, napkins etc" , "bedsheets?" , "Lenin (anag) -- fabric" .)