Arrobas and Gabriel left the group just before the recording of the next album. Howe was replaced by keyboardist Mike Gabriel. Pisapia was replaced briefly by Tracy Howe, who also left in short order, co-founding Rational Youth shortly after his departure. Shortly after the release of the debut EP, Martyn left and was replaced by Jean-Marc Pisapia, who stayed only a short time before leaving, and later founded The Box. At this point, the band had changed styles from punk to new wave and officially consisted of Ivan vocals, bass and Arrobas keyboards also appearing on the EP were auxiliary members Stefan Doroschuk bass, Roman Martyn guitars, and Lynne Thibodeau backing vocals. Their first recording to be released was the 1980 EP Folk of the 80s. Frontman and songwriter Ivan Doroschuk was the only constant member, while Stefan and Colin Doroschuk as well as Arrobas remained as relatively steady members through the early 1980s. In addition to the Doroschuks, the group has also included numerous additional members and guest or touring performers, many of whom quickly came and left during the first five years. The groups name came about because the brothers, following a self-described principle of "style before comfort," refused to wear hats during Montreals cold winters, calling themselves "the men without hats." They moved to Montreal as young children when their parents returned to Canada. The Doroschuk brothers, all three of whom are classically trained musicians, were born in Champaign, Illinois while their father, a Canadian, was earning a doctoral degree. Years earlier, while in high school, Arrobas and the Doroschuk brothers had played together in a short-lived band called Wave 21, along with drummer Igor Krichevsky.
In 1980, Doroschuk restarted Men Without Hats, giving the name to a new synthesizer-based electronic group that he formed with Jeremie Arrobas vocals, keyboards and his brothers Stefan Doroschuk bass and Colin Doroschuk guitar. Men Without Hats was founded in Montreal in 1977, initially as a punk rock band featuring Ivan Doroschuk vocals, Pete Seabrooke guitar, Dave Hill bass, and John Gurrin drums.