Clothes are the basic coverings that protect your decency.
They can be 'search'ed for in the living rooms and bedrooms of houses and flats, looted from corpses or purchased from various vendors.
Clothing comes in different degrees of wear (excellent condition, very good condition, good condition, fairly good condition, fairly poor condition, poor condition, very poor condition) and in different types and colours of cloth.
You can repair clothing with the repair command and the appropriate type of cloth scrap (i.e a scrap 'salvage'd from another article of clothing made from the same sort of cloth).
They can be broken in combat, as fighting tends to degrade the quality of the external layers of clothing worn (although undergarments also break??)