Floor show act dancing round naked (7)
I believe the answer is:
cabaret
'floor show' is the definition.
(synonyms)
'act dancing round naked' is the wordplay.
'dancing' is an anagram indicator.
'round' means one lot of letters goes inside another.
'naked' becomes 'bare' (synonyms).
'act' is an anagram of 'cat'.
'cat' placed around 'bare' is 'CABARET'.
(Other definitions for cabaret that I've seen before include "Entertainment provided in a nightclub" , "Musical - nightclub entertainment" , "Entertainment at night club" , "Evening entertainment as in nightclub" , "Floor-show as in nightclub" .)