Studio is refurbished late - that's right (7)
I believe the answer is:
Here is my best explanation:
'studio' is the definition.
(atelier is a kind of studio)
'refurbished late that's right' is the wordplay.
'refurbished' is an anagram indicator.
'that's' becomes 'ie'.
'right' becomes 'r' (common abbreviation).
'late' with letters rearranged gives 'atel'.
'is' is the link.
(Other definitions for atelier that I've seen before include "Designer's workshop", "Tie earl up in the artist's place", "Studio", "I relate to workshop used by artist", "Workshop or artist's studio", "Artist's workroom", "room for artist", "Artist's studio (French)" and "Artist's workshop, studio".)