The Ting Tings disappeared for a week when they were due to sign their record deal.
The duo – who are currently at number one in the UK singles chart with 'That's Not My Name' - panicked after a bad experience with their previous band, Dear Eskimo.
Drummer Jules De Marino revealed: "We were really nervous about getting involved with a label after being dropped before. When it came to putting pen to paper we panicked. It was horrible.
"I fled to the Scottish Highlands for a week and Katie White, the singer, hid at her mother's house so they couldn't find us."
Producer Rick Rubin – who helped re-launch the careers of the late Johnny Cash and Red Hot Chilli Peppers – and DJ Mike Pickering persuaded the duo to give music another go and sign the deal.
Jules added to Britain's Daily Star newspaper: "Mike was so supportive. He didn't just wave cash in our faces, he was really into the music and came to all our club nights.
"Then Rick got involved. He offered us complete creative control and said he would fly in from the US to sign us.
"At that point we thought, 'Look, they obviously do like us so let's do the deal'."
The band also revealed they have asked their label to drop them again – to inspire their next record.
Jules said: "I think the second album will be really hard, so I've already asked the label to drop us again so we'll have something to write about."
The Ting Ting's first album 'We Started Nothing' is expected to debut at number one in the UK album chart this weekend.