Gendy, in the lower section of Quarrycrest not too far from the entrance, is having trouble with his wares, as it seems interest in them have waned. You will have two solutions for this Side Story, with the first one involving either Therion or Tressa. If you check Gendy’s items, you see he has Gendy’s Footcloth on him. Steal/Purchase it (easier to Purchase, most likely), then fast travel to Flamesgrace. Here, enter the house in the southeastern corner of the first area, which is right next to the exit to the Path to the Cave of Origin. Hand over Gendy’s Footcloth to the Shivering Townsperson to finish the quest.

For the other solution, you will be required to travel to Noblecourt, which is northeast of Atlasdam. In the western part of town, look for the last normal NPC right before Orlick Manse (not the guards). This NPC is named the Fashionable Traveler, so Inquire/Scrutinize this NPC to get the piece of information, A Use of Textiles. Bring this info back to Gendy in Quarrycrest to finish the quest.