Kukl released their second and final studio album, Holidays in Europe (The Naughty Nought), on Crass Records on January 24, 1986.
In the summer of 1986, Einar Ørn returned from England with two projects: the creation of a new record label, Smekkleysa/Bad Taste, and a new band, Sykurmolarnir, later translated as The Sugarcubes.