Bag lady seen to embrace another woman (6)

I believe the answer is:

gladys

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'another woman' is the definition.
'gladys' can be an answer for 'woman' (I've seen this before). I am unsure of the 'another' bit.

'bag lady seen to embrace' is the wordplay.
'to embrace' indicates a hidden word (I've seen 'embraced' mean this).
'GLADYS' is hidden within 'bag lady seen'.

Can you help me to learn more?

(Other definitions for gladys that I've seen before include "Lady's name" , "Knight maybe" , "Female name" , "- Knight and the Pips (Motown)" , "- Cooper, Eng. actress" .)

I've seen this clue in The Times.

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