hemstitch
Concise Oxford English Dictionary © 2008 Oxford University Press:
hemstitch/ˈhɛmstɪtʃ/
▶noun a decorative stitch used especially alongside a hem, in which several adjacent threads are pulled out and the crossing threads are tied into bunches, making a row of small openings. ▶verb decorate the hem of (a garment) with hemstitch.
'hemstitch' also found in these Oxford entries:

