Crossword Genius

Provision merchant’s car wrapped round a tree? (7)

Ross

I believe the answer is:

caterer

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'round a tree?' is the definition.
Although both the answer and definition are singular nouns, I don't understand how one could define the other.

'provision merchant's car wrapped' is the wordplay.
'provision' becomes 'cater' (I've seen this before).
'merchant's car' becomes 'er' (I can't justify this - if you can you should believe this answer much more).
'wrapped' is an insertion indicator.
'cater' enclosing 'er' is 'CATERER'.

Can you help me to learn more?

(Other definitions for caterer that I've seen before include "One providing food and service for a party" , "One supplying cheer" , "Someone needed for party" , "One providing food and drink" , "Provision supplier" .)

I've seen this clue in the Evening Standard.
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