Panama hat of the first towns to start weaving the hats in the Andes is Principal, part of the Chordeleg Canton in the Azuay province. Straw hats woven in Ecuador, like many other 19th and early 20th century South American goods, were shipped first to the Isthmus of Panama before sailing for their destinations in Asia, the rest of the Americas and Europe, subsequently acquiring a name that reflected their point of international sale—"panama hats"—rather than their place of domestic origin. The term was being used by at least 1834. The popularity of the hats increased in the mid-19th century when many
Hats (album) chart in early 1990, becoming the group's only single chart entry in that country. In November 2012 Virgin Records released two-CD "Collector's Edition" versions of "Hats" and its predecessor "A Walk Across the Rooftops" in the UK and Europe, each containing a remastered version of the original album plus a second CD of bonus tracks. The remastering process was overseen by original engineer Calum Malcolm, along with contributions by Paul Buchanan and Robert Bell, who chose the songs for the bonus CD. On its initial release in 1989, "Hats" received highly positive reviews from music critics. Describing the album as