This report provides a detailed analysis of the collapse of Dick Smith Holdings Limited, a major electronics retailer. It identifies key contributing factors, including strategic errors such as failure to adapt to changing customer demands, an overextended retail network, declining market share, and ineffective clearance sales. The report also examines responsible accounting practices, particularly the use of Real Activities Management (RAM) to manipulate revenues and inventory valuation, alongside corporate governance failures. The analysis highlights how these issues, driven by short-term profit motives and a lack of ethical considerations, led to the company's downfall. The report concludes with lessons learned from the case, emphasizing the importance of sound strategic planning, ethical accounting practices, and robust corporate governance in ensuring long-term business sustainability. The report also covers the background of Dick Smith, its acquisition and eventual liquidation, and the financial losses incurred by creditors. The study provides recommendations for other retailers to avoid similar pitfalls, underscoring the significance of adapting to market changes, managing inventory effectively, and prioritizing stakeholder interests.