With tariffs threatening to raise prices, creditors that lend to the retail space are reportedly worried, citing the example of Saks Global Enterprises. That department store chain’s creditors were already concerned, even before Saks announced plans to raise more debt, as its notes that mature in 2029 had dropped by 40% in value in the space of five months. Saks recently said it aims to raise as much as $350 million via a new loan, funds that will help the company maintain what CEO Marc Metrick called an “ample” liquidity cushion, even as it deals with future liabilities such as the first interest payment on its 2029 notes. Some advisers are cautioning banks and private credit outfits that steep apparel costs shouldn’t alter their appraisals of client inventory when making loans. In fact, this is a major topic of discussion at banks such as Wells Fargo, the bank’s head of global receivables and trade Daniel Pfeiffer told. “There’s a lot of discussion right now about the value of the current appraisals, how tariffs show up on invoices and how that flows through to when the goods are sold,” Pfeiffer said. “That cost is on the invoice as well, and in some scenarios could make up half the value of what you’re financing.”