The demo tape of the original version of the song was discovered in 2004 in a closet belonging to bassist Mo Foster.

The collection was eventually released in 2004, on the Angel Air label, under the title Hidden Gems & Treasured Friends.

The song failed to garner significant sales or airplay in the United States, but when it was re-released as a single in 1972, it charted on the Billboard Hot 100, peaking at 42 in March.

Although it was never a hit single for Stewart in the UK, in recognition of its renewed popularity following its use for television series The Office and Stereophonics returning it to the charts, he performed "Handbags and Gladrags" (backed by Phil Collins on drums) as his only song at the Party at the Palace in 2002.

"[7] In 1989, Rod Stewart's version of the song was used in the Season One episode of the TV series Midnight Caller entitled "No Exit".

[19] Bhagwandas described it as the "final drop in the Stereophonics' inevitable descent into pop mediocrity" and criticised the group for "selling out.

In 2000, a version of "Handbags and Gladrags" was specifically arranged by Big George as the theme song on the BBC series The Office.

In Episode Four of Series One, a version performed by Ricky Gervais (in character as David Brent) was played over the end credits.