Nick Heyward formed Haircut 100 in 1981 with friends Graham Jones and Les Nemes. They were soon joined by Phil Smith on saxophone and percussionist Marc Fox. Signed by Arista Records in 1981, they entered Chalk Farm's Roundhouse Studios to record their debut single, "Favourite Shirts (Boy Meets Girl)", which became their first hit, reaching No. 4 in the UK Singles Chart in late 1981, and resulted in their first appearance on BBC Television's Top of the Pops.

For the recording of their debut album, Pelican West, Blair Cunningham came in on drums. Their second single, "Love Plus One", was released in January 1982 and gave the band their second UK Top 10 hit. Pelican West was released in February, reaching No. 2 in the UK Albums Chart. The band became internationally famous and toured the globe. "Love Plus One" reached the US Top 40, and they secured further UK Top 10 hits in 1982 with the singles "Fantastic Day" and "Nobody's Fool".

Heyward and the band parted company in 1983. The remaining members left Arist and signed to Polydor Records. Subsequent singles and an album Paint and Paint (1984) failed to chart and the band split up soon after.