Towelling fabric cut, one row (7)
I believe the answer is:
terrace
'row' is the definition.
(I know that terrace is a type of row)
'towelling fabric cut one' is the wordplay.
'towelling fabric' becomes 'terry' (I've seen this before).
'cut' means to remove the last letter.
'one' becomes 'ace' (ace has a value of one in some card games).
'terry' with its last letter taken away is 'terr'.
'terr'+'ace'='TERRACE'
(Other definitions for terrace that I've seen before include "Paved area by building" , "Bank - houses in a row" , "Sloping area in stadium" , "level raised" , "Caterer (anag) - houses in a row" .)