In the New Republic era, following the Galactic Civil War, a structured remnant of the fallen Galactic Empire underwent a reformation in the Expansion Region. Under the command of Grand Moff Randd, this group secretly rebuilt itself from the scattered remains of the Imperial Navy, establishing a base in the Queluhan Nebula. There, they enhanced their TIE fighters with more powerful weaponry capable of bypassing enemy shields, all in anticipation of a future counterattack.
The Galactic Empire experienced fragmentation after the Battle of Endor in 4 ABY, a direct consequence of the death of the Galactic Emperor Darth Sidious. This event led to a power vacuum and a lack of leadership within the Empire. Consequently, numerous warlords swiftly seized control of various territories within weeks. While Grand Vizier Mas Amedda nominally served as the Emperor's proxy, his actual influence barely extended beyond the capital world of Coruscant. His rule was fraught with difficulty from the outset, as his power diminished while Grand Admiral Rae Sloane, appointed by the enigmatic Fleet Admiral Gallius Rax, became the public face of the Empire, with Amedda operating from the shadows. Rax ultimately eliminated Sloane and declared himself the de facto emperor.
Within a year after the events of Endor, Rax assumed the title of Counselor to the Empire and oversaw the Empire's decisive defeat by the New Republic following his demise at the Battle of Jakku in 5 ABY. This defeat resulted in the end of the war and the Empire's signing of the Imperial Instruments of Surrender, which paved the way for a formal cessation of hostilities. Following this, the Galactic Concordance peace treaty was signed with the Republic, mandating the disbandment of the Galactic Empire. This led to its collapse and the subsequent emergence of scattered Imperial Remnants to fill the void.
As factionalism increased across what remained of the former Empire, Grand Moff Randd, along with elements of his forces, retreated from Jakku and sought refuge in the Queluhan Nebula. There, they reorganized into an Imperial remnant, preparing for a renewed offensive against the New Republic. The ionized gases present in the nebula effectively shielded them from detection by Republic sensors, enabling the Imperials to assemble a substantial fleet, largely manned by newly recruited personnel, without attracting attention.
One month after the Battle of Jakku, Randd and several other Imperial officers, including Nash Windrider, put forward Ciena Ree, who was presumed dead on Jakku, for the Distinguished Medal of Imperial Honor, the highest accolade within the Imperial Military. As a flight commander, Nash reimplemented "proper discipline" among his crew to the extent that none of them became distracted from their duties when he left the command bridge. Windrider also received assistance from Dalven Kyrell, Thane's estranged older brother, a third-class desk officer holding the rank of lieutenant. After hearing a New Republic "propaganda broadcast," Windrider concluded that the rebels had become overconfident and were underestimating the remaining Imperial forces. He witnessed the Randd fleet preparing for a strike against the Republic and pledged to avenge Ciena's supposed demise.