Celebration, after loss of heart, encourages and cheers (6)
I believe the answer is:
fiesta
'celebration' is the definition.
(fiesta is a kind of celebration)
'after loss of heart encourages and cheers' is the wordplay.
'after loss of heart' says to hollow out the word (remove centre letters).
'encourages' becomes 'fires' (fire can mean to encourage or stimulate).
'and' means one lot of letters go next to another.
'cheers' becomes 'ta' (both can informally mean thank you).
'fires' with its centre taken out is 'fies'.
'fies'+'ta'='FIESTA'
(Other definitions for fiesta that I've seen before include "public event abroad" , "religious celebration" , "Feast day" , "A Spanish public celebration" , "Religious event" .)