Fairytale of New York Christmas number one by the Pet Shop Boys' cover of "Always on My Mind". MacGowan was reported to have said "We were beaten by two queens and a drum machine". MacColl later said that she did not feel they were really in competition with the Pet Shop Boys as they were doing a completely different kind of music. The song was re-released by the Pogues in the UK in 1991 (reaching #36), and again in the UK and Ireland for Christmas 2005, reaching number three in the UK. All proceeds from the latter release were donated towards a mixture of
Fairytale of New York ran into financial difficulties and went into administration, although as the label still owned the rights to the Pogues' recordings this meant that a distribution deal had to be negotiated with a new label in order to release any new Pogues material. The group's deteriorating relationship with Costello saw them part ways with their producer, and after increasingly erratic behaviour Cait O'Riordan, who had become romantically involved with Costello, left the band in October 1986. The departure of O'Riordan meant the song had now lost its intended female singer. The problems at Stiff were eventually resolved, and the Pogues were