Tom takes in strip show (7)
I believe the answer is:
cabaret
'show' is the definition.
(I've seen this before)
'tom takes in strip' is the wordplay.
'tom' becomes 'cat' (I have seen 'A tom ' mean 'cat' so perhaps 'tom' could also mean 'cat').
'takes in' is an insertion indicator.
'strip' becomes 'bare' ('bare' can be a synonym of 'strip').
'cat' enclosing 'bare' is 'CABARET'.
(Other definitions for cabaret that I've seen before include "Bear cat (anag.)" , "Bob Fosse musical with Liza Minnelli" , "Revue" , "Evening entertainment as in nightclub" , "Nightclub entertainment, floor show" .)