Folds and quits holding King (7)
I believe the answer is:
creases
'folds' is the definition.
(creasing is a kind of folding)
'quits holding king' is the wordplay.
'quits' becomes 'ceases' ('cease' can be a synonym of 'quit').
'holding' means one lot of letters goes inside another.
'king' becomes 'r' (r is abbreviation for rex).
'ceases' enclosing 'r' is 'CREASES'.
'and' is the link.
(Other definitions for creases that I've seen before include "Cricket lines" , "Pressed lines or crinkles" .)