A quick recap of where we got to:
The party was contracted by the dwarf Gundren Rockseeker to deliver intact a cartload of provisions from Neverwinter to the town of Phandalin. Gundren claimed to have discovered "something big" near Phandalin and went ahead of the party.
On the way to Phandalin, with about one day's march remaining, the party was ambushed by goblins who were quickly dispatched. One goblin was taken prisoner and cruelly interrogated; he revealed the existence of Cragmaw hideout, nearby where the party was ambushed. He also said that Gundren and his escort Sildar Hallwinter had been ambushed and taken to Cragmaw hideout. On the body of one of the goblins, the party found a blood soaked note bearing the mark of the Black Spider.
The party eventually made its way to Phandalin, where they completed delivery of (most of) the carts contents, deciding to take some choice items for themselves. In the local inn, The Stonehill Inn, they asked the locals if any of them would be willing to join them against the Cragmaws; the locals were all too preoccupied with their own problems to aid in the fight. They did however mention that the Redbrands were the strongest in town and that they might be persuaded with the promise of payment. The townsfolk spoke about the Redbrands with fear and said that they could be cruel and untrustworthy.
Still in search of warriors, the party were directed to the elf ranger Duran 'Duran Duran' Eldermath; although he was unable to join them in their fight, he did offer help in the way of some potions of healing should they decide to tackle the Cragmaws alone.
The party decided to search for Gundren's two brothers. They were told that the brothers had set up camp nearby the town. When the party arrived at the campsite there was nothing left of the brothers but some footsteps heading off into the East...