The Redbrands were founded by a traitorous agent of the Lords' Alliance named Iarno Albrek, calling himself "Glasstaff," in late 1299, After making contact with Nezznar "the Black Spider," Iarno conspired to keep the population of Phandalin away from Wave Echo Cave, and in return he would receive a share of the spoils from Nezznar's excavation of the site.
With no local lord or powerful authority within the small town, the Redbrands were able to harass the farmers and prospectors for two months. Apart from terrorizing the local populace, the Redbrands enjoyed drinking at the Sleeping Giant tavern. Many were afraid of standing up to the bandit group, including Townmaster Harbin Wester, the closest thing Phandalin had to a local authority, although some members of the community proved too hard or too dangerous to harass, such as Sister Garaele of the Shrine of Luck and Halia Thornton of the Phandalin Miner's Exchange.
Things eventually escalated to a breaking point when the Redbrands killed the woodcarver, Thel Dendrar, and kidnapped his wife, Mirna Dendrar, and their children, Nars Dendrar and Nilsa Dendrar The group was defeated and cleared from their hideout by Abrams, Eldes, and Thorin in Heshvan 7th, 1300.