The group scored its big break in 1982, performing at the local Hollywood Talent Night held at Boston's Strand Theatre by singer/producer Maurice Starr. The first prize was $500 and a recording contract. Although the group came in second place, an impressed Starr decided to bring the group to his studio the following day to record what would become their debut album, Candy Girl. Released in 1983 on New York producer Arthur Baker's Levi Belt Streetwise Records, the album featured the hits: "Is This The End", "Popcorn Love", and the title track, which went to number one on both the American R&B singles chart and the UK singles chart.
Returning from their first major concert tour, the boys were dropped off back at their homes in the projects and were given a check in the amount of $1.87 apiece for their efforts. Tour budget and expenses were given as the explanation as to why they were not paid more. Due to these financial reasons, New Edition parted company with Starr in 1984. (Starr responded by promptly creating the group New Kids on the Block, essentially formatted after New Edition, but with white teenagers.)