Company with unfortunate legal picture (7)
I believe the answer is:
collage
'picture' is the definition.
(thesaurus)
'company with unfortunate legal' is the wordplay.
'company' becomes 'co' (abbreviation).
'with' is a charade indicator (letters next to each other).
'unfortunate' indicates anagramming the letters.
'legal' with letters rearranged gives 'llage'.
'co'+'llage'='COLLAGE'
(Other definitions for collage that I've seen before include "Style of artwork" , "Composition made by fixing pieces to a surface" , "Artwork from sundry stuck-on items" , "Artwork formed from scraps of paper, photos etc" , "Stuck-on art form" .)