Embraced old man, embarrassed (7)
I believe the answer is:
covered
'embraced' is the definition.
('cover' can be a synonym of 'embrace')
'old man embarrassed' is the wordplay.
'old man' becomes 'cove' (cove is an old-fashioned term for a man).
'embarrassed' becomes 'red' (someone may blush or go red when embarrassed).
'cove'+'red'='COVERED'
(Other definitions for covered that I've seen before include "Concealed; dealt with" , "Concealed; roofed over" , "Reported" , "Travelled (a distance); protected" , "Insured; enveloped" .)