The "nice" parents of the Yule lads own a big black cate known as the Christmas cat (Jólakötturinn). The giant Christmas cat is vicious and even scarier than Grýla, it likes to hunt people who do not receive anything new to wear for Christmas and eats them - not a typically well received notion in modern cultures. This tradition likely originated as a way to encourage people to work hard and finish their chores before Christmas, ensuring they had new clothes for the holiday.
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