The band came out of the late 1970's Liverpool scene. In fact, lead singer Ian McCulloch had previously been in Crucial Three with Julian Cope (who went on to form The Teardrop Explodes before his solo career) and Pete Wylie (Wah! Heat). After Crucial Three broke up, McCulloch began working with guitarist Will Sergeant and bass player Les Pattinson and Echo & the Bunnymen was formed. Some sources believe that the drum machine used by the band was named Echo, but this seems to be in dispute. There is little doubt that the name was essentially random and meant to be ridiculous.
I have to admit that I was surprised that "Lips Like Sugar" never charted, as it has generated a fair bit of airplay through the years. The song did chart in the U.K., where it reached #36, while the album was Echo's highest charting U.S. LP, where it reached #51.
McCullouch left the band in 1988, effectively ending Echo & the Bunnymen (although one album without him was released). The group then re-formed in 1997 and remains together as of this writing.