After leaving Brinsley Schwarz in 1975, Lowe began playing in Rockpile with Dave Edmunds. In August 1976, Lowe released "So It Goes" b/w "Heart of the City", the first single on the Stiff Records label where he was an in-house producer. The single and thus the label was funded by a loan of £400 from Dr. Feelgood's Lee Brilleaux. The label's first EP was Lowe's 1977 four-track release Bowi, apparently named in response to David Bowie's contemporaneous LP Low. (The joke was repeated when Lowe produced The Rumour's album Max as an 'answer' to Fleetwood Mac's Rumours). Lowe continued producing albums on Stiff and other labels. In 1977 he produced Dr. Feelgood's album, Be Seeing You, which included his own song, "That's It, I Quit". The following year's Dr. Feelgood album, Private Practice, contained a song Lowe jointly penned with Gypie Mayo – "Milk and Alcohol". Along with "I Love The Sound of Breaking Glass", "Milk and Alcohol" is one of only two Lowe compositions to ever reach the Top 10 of the UK Singles Chart.
Lowe produced Elvis Costello's first five albums, including My Aim Is True, This Year's Model, and Armed Forces. He also produced The Damned's first single, "New Rose", considered the first English punk single, as well as the group's debut album, Damned Damned Damned.
His early 'rough and ready' production style earned him the nickname Basher (as in 'bash it out now, tart it up later'). Upon moving from Stiff to Jake Riviera's Radar and F-Beat labels, Lowe became selective in his choice of production tasks.
Because the two main singers in Rockpile had recording contracts with different record labels and managers, albums were always credited to either Lowe or Edmunds, so there is only one official Rockpile album, which was not released until the waning days of the collaboration: 1980's Seconds of Pleasure, featuring the Lowe songs "When I Write The Book" and "Heart". However, two of the pair's most significant solo albums from the period; Lowe's Labour of Lust and Edmunds' Repeat When Necessary, were effectively Rockpile albums (as was Carlene Carter's Lowe-produced Musical Shapes album).
Lowe was quoted as saying that he had "escaped from the tyranny of the snare drum" in No Depression, (September–October 2001) when explaining his move away from regular pop music that would get played on mainstream radio.
Other well-known Lowe songs include "I Love The Sound of Breaking Glass," "All Men Are Liars," and Cruel to Be Kind, co-written with Ian Gomm and originally recorded with Brinsley Schwarz, a re-recording of which was his only U.S. Top 40 hit, reaching #12 on the Billboard Hot 100 chart in 1979.
In 1979, Lowe married country singer Carlene Carter, daughter of fellow country singers Carl Smith and June Carter Cash and stepdaughter of Johnny Cash. He adopted her daughter, Tiffany Anastasia Lowe. The marriage ended in 1990, but they remained friends, and Lowe remained close to the Carter/Cash family. He played and recorded with Johnny Cash, and Cash recorded several of Lowe's songs. Lowe's first son, Roy Lowe, was born in 2005.
After the demise of Rockpile, Lowe toured for a period with his band Noise To Go and later with The Cowboy Outfit, which also included the noted keyboard player Paul Carrack. Lowe was also a member of the short-lived mainly studio project Little Village with John Hiatt, Ry Cooder and Jim Keltner, who originally got together to record Hiatt's 1987 album Bring the Family.
In 1992, "(What's So Funny 'Bout) Peace, Love, and Understanding" was covered by Curtis Stigers on the soundtrack album to The Bodyguard, an album that sold about 44 million copies world-wide.
A New York Daily News article quoted Lowe as saying his greatest fear in recent years was "sticking with what you did when you were famous". "I didn't want to become one of those thinning-haired, jowly old geezers who still does the same shtick they did when they were young, slim and beautiful," he said. "That's revolting and rather tragic." Rock critic Jim Farber observed: "Lowe's recent albums, epitomised by the new At My Age, moved him out of the realms of ironic pop and animated rock and into the role of a worldly balladeer, specialising in grave vocals and graceful tunes. Lowe's four most recent solo albums mine the wealth of American roots music, drawing on vintage country, soul and R&B to create an elegant mix of his own."
In 2008, Yep Roc and Proper Records released a thirtieth anniversary edition of Lowe's first solo album Jesus of Cool (entitled Pure Pop for Now People in the U.S. with a slightly different track listing). The re-issue includes tracks from the British and American releases in addition to several bonus tracks. In March 2009, he released a 49 track CD/DVD compilation of songs which spanned his entire career. Proper Records released it in the UK and Europe, entitled Quiet Please... The New Best of Nick Lowe.
In September 2010 Yep Roc issued The Impossible Bird, Dig My Mood and The Convincer on vinyl for the first time, and after a one-night reunion concert with Elvis Costello in October in San Francisco, Lowe embarked on his first non-solo United States tour "this millennium." His backing band comprised Geraint Watkins (keyboards), Robert Treherne (drums), Johnny Scott (guitar) and Matt Radford (bass). In March 2011, Yep Roc reissued Lowe's 1979 solo album Labour of Lust.
Lowe played Glastonbury 2011, performing a short solo set of Brinsley Schwarz tracks on The Spirit Of 71 stage, where they played back in 1971, before heading to the Acoustic Stage for a full band show.
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