One of the most original and, in terms of frontman Andi Sexgang's longevity, persistent of all the early-'80s British goth bands, the Sex Gang Children came together in early 1981 around a nucleus ofSexgang, bassist Dave Roberts, guitarist Terry MacLeay, and drummer Rob Stroud. All were unknowns, ensuring that the group's name was more fascinating than their membership. A William Burroughs line that had been grafted into a song by Bow Wow Wow, "Sex Gang Children" was promptly co-opted by one Boy George when he bowed out of that band after just two live shows in February 1981 to form his own group. But hopeful of landing a swift record deal, George conceded thatSex Gang Children was not a name that would take them far. He chose Culture Club instead, then gifted the discarded name to Andi.
By early 1982, the Sex Gang Children were regulars at the Clarendon Hotel in Hammersmith, where they recorded their debut album, the cassette-only live album Naked. The Illuminated label moved in for them within weeks of its release; the band's first single, the four-song Beasts EP, was in the stores by August 1982. Days later, however, it was out of them again, after somebody realized they'd not procured the necessary permissions for the Diane Arbus photo on the picture sleeve. With a major lawsuit apparently imminent, the record was briefly withdrawn while the sleeves were removed, but stillBeasts reached number eight on the indie chart and hung around the listings for much of the next 12 months.