To my knowledge, Dire Straits haven't ever covered *anyone*, let alone the Supremes, so it can't be them.

Is it not more likely that it refers to Phil Collins' cover of You Can't Hurry Love from 1982's 'Hello, I Must Be Going!' - of which, "None of the other single releases from the album made any significant impact on the charts"?

http://en.wikipedia.org/wiki/Hello,_I_Must_Be_Going!_(album)